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The Effects of Protests on Agents’ Expectations: Evidence from Students’ Demonstrations in Chile
Author(s) -
Correa Juan A.,
Morales Raúl,
Parro Francisco
Publication year - 2018
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/deve.12180
Subject(s) - consumer confidence index , narrative , index (typography) , confidence interval , self confidence , state (computer science) , face (sociological concept) , political science , psychology , demographic economics , economics , business , social psychology , marketing , sociology , social science , medicine , literature , computer science , art , algorithm , world wide web
We use a narrative approach to study the effects of protests on agents’ expectations. The “protest shocks” in the case of our study arose from Chile's student demonstrations. The demonstrations, led by university and secondary students, raised demands related to greater involvement of the state in the funding, provision, and regulation of the education sector. We find a negative response in relation to both the consumer confidence index and the business confidence index in the face of those demonstrations. The negative effect of the protests on the consumer confidence index lasted, on average, six months after the demonstrations. The impact of the protests on the business confidence index was more limited, although still negative and statistically significant.