This paper puts forward a new data collection method 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, we show that the incremental information content in the novel indicator helps to better forecast consumption.

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Erasmus University Rotterdam
hdl.handle.net/1765/77640
Econometric Institute Research Papers , Econometric Institute Reprint Series
Erasmus School of Economics

de Bruijn, B., Segers, R., & Franses, P. H. (2014). A Novel Approach to Measuring Consumer Confidence (No. EI-1670). Econometric Institute Reprint Series. Retrieved from http://hdl.handle.net/1765/77640