The influence of negative newspaper coverage on consumer confidence: The Dutch case

David Hollanders and Rens Vliegenthart

Journal of Economic Psychology, 2011, vol. 32, issue 3, 367-373

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 1990-2009. Media-attention for economic developments is associated with consumer confidence, with more negative news decreasing consumer confidence; this result holds after controlling for the real economy (stock-market). The relationship differs for different business-cycles. The effect is in particular stronger for the months following the beginning of the credit-crisis. 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.

Keywords: Consumer; confidence; Media; VAR-analysis (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:32:y:2011:i:3:p:367-373

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