The Effects of Protests on Agents’ Expectations: Evidence from Students’ Demonstrations in Chile

Juan A. Correa, Raúl Morales, Fernando Parro

Research output: Contribution to journalArticle


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.

Original languageEnglish (US)
Pages (from-to)221-235
Number of pages15
JournalDeveloping Economies
Issue number3
Publication statusPublished - Sep 1 2018


All Science Journal Classification (ASJC) codes

  • Development
  • Economics and Econometrics

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