The Stock Market and the Consumer Confidence Channel: Evidence from Canada
Bibliographic record
Abstract
Two channels through which stock prices can affect consumption are wealth effects \nand shifts in consumer confidence. We examine the evidence for the latter channel \nfor Canada, using consumer confidence survey data. The composition of households' \nfinancial wealth between stock and pension funds holdings as well as the unique 6- \nmonth forecast horizon in the consumer confidence survey make Canada a particularly \ninteresting case relative to the U.S. and European countries. We find that both stock \nprice changes and their volatility are significant predictors of consumer responses to \nquestions that are unrelated to expectations of future personal finances, even after \ncontrolling for inflation, unemployment and interest rates. Moreover, there is a significant short-term increase in consumer pessimism after an unexpected rise in stock \nmarket volatility. Overall, the evidence for the confidence channel suggests that this \nchannel can amplify the effects of the well-understood wealth channel. Consequently, it \nshould be taken into account in determining quantitative impacts of the stock market \non consumer behaviour.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.008 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.001 | 0.004 |
| Science and technology studies | 0.002 | 0.001 |
| Scholarly communication | 0.002 | 0.000 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.000 | 0.001 |
| Insufficient payload (model declined to judge) | 0.005 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".