This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
Journal of Economic Perspectives: Vol. 18 No. 2 (Spring 2004)
JEP Volume. 18, Issue 2 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
Full-text Article (Complimentary)
View Comments on This Article (0) | Login to post a comment
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
How Should We Measure Consumer Confidence?
Article Citation
Dominitz, Jeff, and
Charles F. Manski. 2004. "How Should We Measure Consumer Confidence?."
The Journal of Economic Perspectives,
18(2): 51-66.
DOI: 10.1257/0895330041371303
DOI: 10.1257/0895330041371303
Abstract
Research on consumer confidence has mainly sought to evaluate the power of available data to predict economic outcomes. In contrast, this article considers how best to measure consumer confidence. We analyze the responses to eight questions that have appeared recently on the Michigan Survey of Consumers; four elicit expectations in the traditional qualitative manner and four use a newer "percent chance" format. Examination of the responses suggests three implications. It makes more sense to ask for expectations of events directly relevant to individual economic decisions than for predictions of general business conditions. Surveys should shift away from qualitative questions in favor of ones eliciting subjective probability judgments. While aggregating responses into an index of consumer confidence may provide simple summary statistics, results should also be presented on a question-by-question basis for different subgroups of the population.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Dominitz, Jeff
Manski, Charles F.
Manski, Charles F.
Comments
View Comments on This Article (0) | Login to post a comment
