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The influence of negative newspaper coverage on consumer confidence: The Dutch case

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  • Hollanders, David
  • Vliegenthart, Rens

Abstract

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.

Suggested Citation

  • Hollanders, David & Vliegenthart, Rens, 2011. "The influence of negative newspaper coverage on consumer confidence: The Dutch case," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 367-373, June.
    • Handle: RePEc:eee:joepsy:v:32:y:2011:i:3:p:367-373
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    References listed on IDEAS

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    Cited by:

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    8. van Giesen, Roxanne I. & Pieters, Rik, 2019. "Climbing out of an economic crisis: A cycle of consumer sentiment and personal stress," Journal of Economic Psychology, Elsevier, vol. 70(C), pages 109-124.
    9. Burcu Ozgun & Tom Broekel, 2024. "Saved by the news? COVID-19 in German news and its relationship with regional mobility behaviour," Regional Studies, Taylor & Francis Journals, vol. 58(2), pages 365-380, February.
    10. Tufan Ekici, 2016. "Subjective Financial Distress in the Formation of Consumer Confidence: Evidence from Novel Household Data," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(2), pages 11-36.
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