Nuremberg Research Seminar in Economics on 10 November 2021 – ZOOM
You are invited to join the weekly Nuremberg Research Seminar in Economics on 10 November 2021, from 13.15 to 14.45 pm. The seminar will be held via Zoom. Thiemo Fetzer (University of Warwick) will be talking about “How Big is the Media Multiplier? Evidence from Dyadic News Data”.
More information can be found here:
This paper estimates the size of the media multiplier, a model-based measure of how far media coverage magnifies the response to shocks. We combine monthly aggregated and anonymized card activity data from 114 card issuing countries in Turkey, Egypt, Tunisia, Israel and Morocco with a large corpus of news coverage of violent events at these five destinations. To define and quantify the media multiplier we estimate a model in which latent beliefs, shaped by either events or news coverage, drive the behavior of heterogeneous agents. We show here that this parsimonious model does a remarkably good job at picking up the timing and differential responses to the shock in different contexts. According to the model, card activity falls by 53 percent if a country is regarded as dangerous by all agents – more than half of this effect is due to the media multiplier.