The heterogeneity of consumer sentiment in an increasingly homogenous global economy

Recent investigations concerning consumer confidence in the U.S. have shed light on both the economic and political forces that contribute to its dynamics. And yet, as the recent financial crisis makes clear, the world economy is an increasingly interdependent place. This paper explores whether, in fact, consumer confidence responds differently to economic events in different political and institutional contexts. Our preliminary findings indicate that consumer confidence has shared variance in four countries for which we have data, but also unique variance with origins in national politics.