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The Demand for Economic Narratives

Author

Listed:
  • Sebastian Blesse
  • Klaus Gründler
  • Philipp Heil
  • Henning Hermes

Abstract

Economic narratives are pervasive in the public discourse and can shape individual behavior. But so far we know very little about whether households actually demand and value narratives as information. We combine a comprehensive expert survey with a large-scale nationally representative household sample in the U.S. to examine the demand for economic narratives in a high-stakes environment of an unprecedentedly high recession probability. We document a substantial willingness to pay for economic narratives of more than 4 USD, which is higher than for numerical forecast information. The dominant motives for acquiring narratives are intrinsic, but a smaller share of participants also lists instrumental motives. Economic narratives improve respondents’ understanding of recession drivers and shape beliefs about the economy and spending, but exert only a minor impact on quantitative expectations. Our findings underscore the potential of narratives as a tool to improve economic understanding and to foster more informed decision-making.

Suggested Citation

  • Sebastian Blesse & Klaus Gründler & Philipp Heil & Henning Hermes, 2025. "The Demand for Economic Narratives," CESifo Working Paper Series 12204, CESifo.
    • Handle: RePEc:ces:ceswps:_12204
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    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy

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