Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279370 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10619
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper estimates the size of the media multiplier, a model-based measure of how far media coverage magnifies the economic response to shocks. We combine monthly aggregated and anonymized credit card activity data from 114 card issuing countries in 5 destination countries with a large corpus of news coverage in issuing countries reporting on violent events in the destinations. To define and quantify the media multiplier we estimate a model in which latent beliefs, shaped by either events or news coverage, drive card activity. According to the model, media coverage can more than triple the economic impact of an event. We show that within our sample, media reporting more than doubled the effect of events in Tunisia and speculate about the role of the media in driving international travel patterns. This concept can easily be generalized to other contexts and settings pending suitable data.
Subjects: 
media
economic behaviour
news shocks
JEL: 
O10
F50
D80
F10
L80
Document Type: 
Working Paper
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