- The influence of negative newspaper coverage on consumer confidence: the Dutch case
- Journal of Economic Psychology
- Volume | Issue number
- 32 | 3
- Pages (from-to)
- Document type
- Faculty of Law (FdR)
Faculty of Social and Behavioural Sciences (FMG)
- Amsterdam Institute for Advanced Labour Studies (AIAS)
Amsterdam School of Communication Research (ASCoR)
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.
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