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Identifying The Factors That Influence Changes In Aggregate Sentiment Among The Masses: An Analysis Of The Measure Of Consumer Sentiment Through A Conflict Analysis And Resolution Lens, Michael Carl Letamendi

Department of Conflict Resolution Studies Theses and Dissertations

The University of Michigan's Survey Research Center developed a tool to quantify how people feel towards the state of the economy. Dr. George Katona, a psychologist and professor at the University of Michigan developed the Index of Consumer Sentiment (ICS) in the 1940s. As decades of data were collected on aggregate consumer sentiment through the 50s and 60s, a discovery was made. The ICS seemed to indirectly predict the direction of the economy by accurately anticipating aggregate purchasing versus saving decisions. The index is even used today by the U.S. Government to measure consumer confidence and has been noted to …