Police-Involved Killings and the Black-White Gap in Economic Expectations

21 Pages Posted: 27 Dec 2022

See all articles by Cody Couture

Cody Couture

Hamilton College - Economics Department

Ann L. Owen

Hamilton College - Economics Department

Date Written: December 16, 2022

Abstract

Expectations about macroeconomic variables vary substantially by race, most notably between Black and White individuals. Our results suggest that one factor affecting the difference in expectations is that Black expectations are influenced by negative experiences with the criminal justice system. We find evidence for one channel through which these negative experiences influence expectations by showing that, relative to White respondents, Black respondents became more pessimistic about both their own economic circumstances and their inflation expectations following highly-publicized incidents related to police-involved killings. This suggests a channel through which non-economic events can affect the economy via their impact on consumer expectations.

Keywords: Police Killing, Racial Differences, Consumer Expectations

JEL Classification: E30, D84, D14

Suggested Citation

Couture, Cody and Owen, Ann L., Police-Involved Killings and the Black-White Gap in Economic Expectations (December 16, 2022). Available at SSRN: https://ssrn.com/abstract=4304921 or http://dx.doi.org/10.2139/ssrn.4304921

Cody Couture

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States

Ann L. Owen (Contact Author)

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4419 (Phone)
303-859-4477 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
38
Abstract Views
226
PlumX Metrics