The Influence of Economic News on the Household`s Decisions in the Countries of BRICS

The study is devoted to the role of information context in dynamics of consumption/savings decisions in the countries of BRICS. First the Russian case was investigated. The basis for the Russian case study was a selection of news from major Russian TV channels for 2006-2016. The news available to ordinary viewers was analyzed.

The study is devoted to the role of information context in dynamics of consumption/savings decisions in the countries of BRICS. First the Russian case was investigated. The basis for the Russian case study was a selection of news from major Russian TV channels for 2006-2016. The news available to ordinary viewers was analyzed. News was defined as negative or positive with use of special program tools of sentiment analysis. It turned out that the increased uncertainty (the spread of positive and negative news) leads to choice of consumption to the detriment of savings, which, thereafter, reduces the investment base of the economy. The authors analyzed the connection of the tonality of news and its changes with the business cycle. An "information cycle" was found out, which, with some lag, correlates with the cycle in consumption/savings decisions in the Russian Federation. The perspectives of the study are Brazilian, Chinese, Indian and South-African cases. Also the deviations from the traditional model of rational expectations are going to be investigated, and the hypotheses of the “rational inattention” should be tested. Based on the study, recommendations should be offered for the public policy adjusting. 

Markova Anna: The seminar called "The influence of economic news on the household's decisions in BRICS countries" is extremely topical and gives a lot of information to digest. The authors of the research have explained how TV news or newspaper news, or the Internet influence an ability to manage savings, to predict times when there can be a great need in money and if people can define in the right way how to spend their money getting good and bad news. We also have discovered that there are computer programs, which are able to define the "goodness" of news. During the seminar we had a unique opportunity to understand the process of doing this interesting research.

It is very important to understand the connection between tonality of news and decision made by consumers. This research has raised a question: "What do we know about the real situation in the country, the world (is it stable or not) and does this unawareness injure us?"

Zhukova Anastasia: The seminar about “The influence of economic news on the household’s decisions in the countries of BRICS” held by researchers is topical and provides students with the example of real empirical research on the contemporary processes that occur at present. The discussion allowed us a deep penetration into methods of analysis and software involved.

 

Such a meeting allows us to understand the ways we can follow in defining our own research and methods available to choose. Unfortunately, the limit of time prevented us from a deeper understanding of this interesting research.