Journal of economic psychology vol:14 issue:4 pages:615-633
The unidimensionality of consumer confidence, a U.S. leading indicator, is investigated in the European Economic Community (EEC). The present findings confirm American and European evidence that the confidence indicators now in use are not unidimensional. They also point to a strong 'sociotropic' component of consumer confidence in each of the four largest nations of the EEC. The present results are provided by model-based survey measures which, unlike the status quo indicators, can be quality checked.