How Big Is the Media Multiplier? Evidence from Dyadic News Data

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 10619

Classification and Topics

• Classification: Wirtschaft ; Economic Development: General ; International Relations, National Security, and International Political Economy: General ; Information, Knowledge, and Uncertainty: General ; Trade: General ; Industry Studies: Services: General
• Subject: media ; economic behaviour ; news shocks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Besley, Timothy ; Fetzer, Thiemo ; Mueller, Hannes
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/279370
• Last update: 10.03.2025, 11:42 AM CET