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

See all articles by David Hollanders

David Hollanders

Tilburg University - Center and Faculty of Economics and Business Administration

Rens Vliegenthart

University of Amsterdam

Date Written: July 6, 2009

Abstract

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

Hollanders, David and Vliegenthart, Rens, The Influence of Negative Newspaper Coverage on Consumer Confidence: The Dutch Case (July 6, 2009). CentER Discussion Paper Series No. 2009-55. Available at SSRN: https://ssrn.com/abstract=1430287 or http://dx.doi.org/10.2139/ssrn.1430287

David Hollanders (Contact Author)

Tilburg University - Center and Faculty of Economics and Business Administration ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Rens Vliegenthart

University of Amsterdam ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands

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