Note(s): This table presents the impact of financial stress on general economic confidence. GECPER = 1 if the respondent’s perception towards their present general economic condition compared to a year ago has improved, 0 if it remained the same and −1 if it worsened. Similarly, GECOTL = 1 if the respondent’s outlook on the future general economic condition a year ahead will improve, 0 if it will remain the same and −1 if it will worsen. LFSI is the first lag of the financial stress index. Standard errors clustered at the city level are reported in parentheses. *, ** and *** indicate significance at the 10, 5 and 1%, respectively

Source(s): Authors’ own work