The Influence of Negative Newspaper Coverage on Consumer Confidence: The Dutch Case
CentER Discussion Paper Series No. 2009-55
16 Pages Posted: 7 Jul 2009
Date Written: July 6, 2009
This paper studies the empirical relationship between the real economy, consumer confidence and economic news coverage in national newspapers for the Netherlands during the period 1990-2008. Media-attention for economic developments Granger-causes consumer confidence, with more negative news decreasing consumer confidence; this result holds when controlling for the real economy (stock-market). This suggests that in line with many popular concerns negative news is among factors influencing the hardness of the landing of the current credit-crisis, whereas positive news might have been a contributing factor in the build-up of asset- and housing bubbles.
Keywords: Consumer Confidence, Media, VAR-analysis
JEL Classification: E00, E32, H31
Suggested Citation: Suggested Citation