Are Italian consumer confidence adjustments asymmetric? A macroeconomic and psychological motives approach

Antonio Paradiso (), Saten Kumar and Patrizia Margani

Journal of Economic Psychology, 2014, vol. 43, issue C, 48-63

Abstract: This paper estimates the determinants of Italian consumer confidence indicator (CCI) using time series methods. We find there exists a long-run relationship between CCI and its determinants when an important political event ‘operation clean hands’, captured by a dummy, is considered. Using the asymmetric error correction model (Enders & Siklos, 2001), we find that consumers respond asymmetrically to different types of disequilibrium error under threshold autoregressive (TAR) adjustment specification. These findings are consistent with the psychological bias approach (Bovi, 2009).

Keywords: Asymmetric error correction; Long-run; Short-run; Consumer confidence indicator; Psychological motives (search for similar items in EconPapers)
JEL-codes: C22 C32 D12 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167487014000257
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:43:y:2014:i:c:p:48-63

DOI: 10.1016/j.joep.2014.04.006

Access Statistics for this article

Journal of Economic Psychology is currently edited by G. Antonides and D. Read

More articles in Journal of Economic Psychology from Elsevier
Bibliographic data for series maintained by Catherine Liu ().