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Author Lamla, Michael J. ♦ Lein, Sarah M.
Source CiteSeerX
Content type Text
File Format PDF
Language English
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Jel Classification ♦ Volume Channel ♦ Consumer Inflation Expectation ♦ Medium Report ♦ Consumer Inflation Expectation Formation ♦ Consumer Forecast ♦ Inflation Report ♦ Medium Bias ♦ Volume Effect ♦ Unique Data Set ♦ Report Matter ♦ Tone Channel
Description This paper analyzes the impact of the media on consumers ’ inflation expectations. We distinguish two channels through which media can influence expectations. First, the intensity of coverage of inflation reports plays a role (volume channel). Second, the contents of these reports matter (tone channel). Employing a unique data set capturing media reports on inflation in Germany comprising 01/1998–09/2007 we are able to discriminate between these two effects. We find that the volume effect generally improves the accuracy of consumer forecasts while the tone channel induces a media bias. JEL classification: E52; D83
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article
Publisher Date 2008-01-01
Publisher Institution KOF Swiss Economic Institute: KOF Working Papers 201