The authors investigate the dimensionality of the Index of Consumer Confidence using micro-data from the Dutch CBS Consumer Sentiment Survey. This index (with its two sub-indices) is based on Katona's psychological analysis of economic behavior. It is often used as a short term business cycle indicator. On the individual level correlations between the five questions are so low that summation into one scale does not seem to be warranted. Instead three orthogonal indexes are distinguished. On the aggregated level this distinction turns out to make sense. One newly distinguished index predicts consumer behavior better than any of the old (sub)indices. Research design and several findings are described more extensively in Nobel and Winkels (1993). [ABSTRACT FROM AUTHOR]; Copyright of Mens en Maatschappij is the property of Amsterdam University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
