The Impact of Newspapers on Consumer Confidence: Does Spin Bias Exist?
Steven Brakman (),
Lex Hoogduin and
Gerard Kuper ()
No 1328, CESifo Working Paper Series from CESifo Group Munich
It is sometimes argued that news reports in the media suffer from biased reporting. Mullainathan and Shleifer (2002) argue that there are two types of media bias. One bias, called ideology, reflects a news outletâ€™s desire to affect reader opinions in a particular direction. The second bias, referred to as spin, reflects the outletâ€™s attempt to simply create a memorable story. Competition between outlets can eliminate the effect of ideological bias, but increases the incentive to spin stories. We examine whether we find some evidence of spin in Dutch newspaper reporting on the state of the economy. If newspapers are indeed able to create memorable stories this should, according to our hypothesis, affect the opinion of readers with respect to the state of the economy. Sentiments about the actual state of the economy could be magnified by spin. As a result, consumer confidence â€“ a variable that routinely measures the opinion on the state of the economy â€“ can be expected to be affected not only by economic fundamentals, but also by the way these fundamentals are reported. We construct a variable that reflects the way consumers perceive economic news reported in newspapers. We find that this variable indeed has a significant impact on consumer confidence, which is short-lived.
New Economics Papers: this item is included in nep-cbe, nep-cul, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: The impact of newspapers on consumer confidence: does spin bias exist? (2008)
Working Paper: The Impact of Newspapers on Consumer Confidence: Does Spin Bias Exist? (2004)
Working Paper: The impact of newspapers on consumer confidence: does spin bias exist? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1328
Access Statistics for this paper
More papers in CESifo Working Paper Series from CESifo Group Munich Contact information at EDIRC.
Series data maintained by Klaus Wohlrabe ().