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Feeling The Heartbeat Of Regions: Local News And Economic Sentiments

Author

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  • Tom Broekel

Abstract

Timely and spatially detailed indicators of regional economic activity are limited. This paper introduces the Regional Economic News Sentiments (REGENS) index, a high-frequency measure based on geocoded news headlines from 300+ German-language outlets since 2019. REGENS captures local economic sentiment, aligns with national indicators, and significantly leads regional unemployment by up to four months. While its link to GDP growth is weaker, it consistently reflects regional economic patterns. The study highlights how media signals contribute to understanding economic development and illustrates the potential of text-based indicators to sharpen the spatial and temporal resolution of regional monitoring.

Suggested Citation

  • Tom Broekel, 2025. "Feeling The Heartbeat Of Regions: Local News And Economic Sentiments," Papers in Evolutionary Economic Geography (PEEG) 2519, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2025.
    • Handle: RePEc:egu:wpaper:2519
    as

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    File URL: http://econ.geo.uu.nl/peeg/peeg2519.pdf
    File Function: Version July 2025
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    References listed on IDEAS

    as
    1. David Iselin & Boriss Siliverstovs, 2016. "Using newspapers for tracking the business cycle: a comparative study for Germany and Switzerland," Applied Economics, Taylor & Francis Journals, vol. 48(12), pages 1103-1118, March.
    2. Diego García, 2013. "Sentiment during Recessions," Journal of Finance, American Finance Association, vol. 68(3), pages 1267-1300, June.
    3. Joseph E. Engelberg & Christopher A. Parsons, 2011. "The Causal Impact of Media in Financial Markets," Journal of Finance, American Finance Association, vol. 66(1), pages 67-97, February.
    4. Garz, Marcel, 2018. "Effects of unemployment news on economic perceptions – Evidence from German Federal States," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 172-190.
    5. Robin Greenwood & Andrei Shleifer, 2014. "Expectations of Returns and Expected Returns," The Review of Financial Studies, Society for Financial Studies, vol. 27(3), pages 714-746.
    6. Milad Abbasiharofteh & Miriam Krüger & Jan Kinne & David Lenz & Bernd Resch, 2023. "The digital layer: alternative data for regional and innovation studies," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(4), pages 507-529, October.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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