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- Title
Fireside Chats: Communication and Consumers' Expectations in the Great Depression.
- Authors
Pedemonte, Mathieu
- Abstract
This paper shows how policy announcements can be used to manage expectations. Using regional variation in radio exposure, I evaluate the impact of FDR's 1935 Fireside Chat, in which he showcased the introduction of important social policies, establishing a new expansionary cycle of the New Deal. I document that cities with higher exposure to the announcement exhibited a significant increase in spending on durable goods. The estimated effect is consistent with changes in expectations in line with the policies announced. This paper shows the power of communication as a policy tool.
- Subjects
GREAT Depression, 1929-1939; CONSUMERS; DURABLE consumer goods; COMMUNICATION policy; EXPECTATION (Psychology)
- Publication
Review of Economics & Statistics, 2024, Vol 106, Issue 4, p997
- ISSN
0034-6535
- Publication type
Article
- DOI
10.1162/rest_a_01200