Title
Expenditure, Sentiment, and Uncertainty: Identifying Shocks to Consumer Confidence Using Daily Data
Project Dates
04/09/2013 -
Description
The importance of consumer confidence in stimulating economic activity is a disputed issue in macroeconomics. Do changes in confidence represent an autonomous fluctuation in optimism, independent of information on economic fundamentals, or are they a reflection of economic news? The aim of this project is to understand whether consumer confidence contains information relevant to spending decisions that is not contained in other economic indicators. I answer this question by studying the dynamics of spending and confidence in a structural vector autoregressive model.
Subject Area
LABOR MARKET ISSUES
COinS
Publications
Expenditure and Confidence: Using Daily Data to Identify Shocks to Consumer Confidence, Marta Lachowska. Oxford Economic Papers 68(4)(2016): 920-944
Expenditure, Confidence, and Uncertainty: Identifying Shocks to Consumer Confidence Using Daily Data, Marta Lachowska. Upjohn Institute Working Paper 13-197 (2013)