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.

Additional Metadata
Keywords Consumer confidence, Randomized sampling, Markov transition model, consumption
JEL Models with Panel Data (jel C33), Survey Methods (jel C42), Methodology for Collecting, Estimating, and Organizing Microeconomic Data (jel C81), Consumption, Saving, Production, Employment, and Investment: General (jel E20)
Publisher Erasmus University Rotterdam
Persistent URL hdl.handle.net/1765/77640
Series Econometric Institute Research Papers , Econometric Institute Reprint Series
Citation
de Bruijn, L.P, Segers, R, & Franses, Ph.H.B.F. (2014). A Novel Approach to Measuring Consumer Confidence (No. EI-1670). Econometric Institute Reprint Series. Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/77640