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News Consumption, Political Preferences, and Accurate Views on Inflation

David-Jan Jansen and Matthias Neuenkirch ()

No 2017-03, Research Papers in Economics from University of Trier, Department of Economics

Abstract: Using three waves of a customised survey among Dutch households, this paper studies the variation in people’s views on inflation. Based on a range of panel regressions, we find that accurate perceptions of recent price changes are an important determinant of the accuracy of next-year inflation expectations. The realism of inflation perceptions is, in turn, related to the intensity of newspaper consumption and also affected by the broadness of a person’s political preferences. However, more frequent newspaper usage does not necessarily reduce errors in inflation perceptions.

Keywords: Inflation expectations; inflation perceptions; newspaper readership; political preferences; household survey data (search for similar items in EconPapers)
JEL-codes: D12 D83 D84 E31 E58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-pol
Date: 2017
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http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2017-03.pdf First version, 2017 (application/pdf)

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