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A novel approach to measuring consumer confidence

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  • Segers, Rene
  • Franses, Philip Hans
  • de Bruijn, Bert

Abstract

A new data collection method is put forward to measure daily consumer confidence at the individual level. The data thus obtained allow to statistically analyze the dynamic correlation of such a consumer confidence indicator and to draw inference on transition rates. The latter is not possible for currently available monthly data collected by statistical agencies on the basis of repeated cross-sections. In an application to measuring Dutch consumer confidence, results show that the incremental information content in the novel indicator helps to better forecast consumption.

Suggested Citation

  • Segers, Rene & Franses, Philip Hans & de Bruijn, Bert, 2017. "A novel approach to measuring consumer confidence," Econometrics and Statistics, Elsevier, vol. 4(C), pages 121-129.
    • Handle: RePEc:eee:ecosta:v:4:y:2017:i:c:p:121-129
    DOI: 10.1016/j.ecosta.2016.11.009
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    References listed on IDEAS

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    9. Jeff Dominitz & Charles F. Manski, 2004. "How Should We Measure Consumer Confidence?," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 51-66, Spring.
    10. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, January.
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    Cited by:

    1. Wu, Hung-Che & Ai, Chi-Han & Cheng, Ching-Chan, 2019. "Experiential quality, experiential psychological states and experiential outcomes in an unmanned convenience store," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 409-420.
    2. Chi-Wei Su & Xian-Li Meng & Ran Tao & Muhammad Umar, 2023. "Chinese consumer confidence: A catalyst for the outbound tourism expenditure?," Tourism Economics, , vol. 29(3), pages 696-717, May.

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    More about this item

    Keywords

    Consumer confidence; Randomized sampling; Markov transition model; Consumption;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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