Mapping Systemic Contagion of Consumer Sentiment Shocks Across National Financial Markets: A Network Analysis of Interconnected Socio-Economic Systems
Systems, cilt.14, sa.8, ss.1-22, 2026 (SSCI)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 14 Sayı: 8
- Basım Tarihi: 2026
- Doi Numarası: 10.3390/systems14080950
- Dergi Adı: Systems
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI)
- Sayfa Sayıları: ss.1-22
- Recep Tayyip Erdoğan Üniversitesi Adresli: Evet
Özet
Consumer sentiment shocks rarely remain confined to their economy of origin. Adopting a systems-thinking perspective, this study treats the equity markets of thirteen advanced economies as one interconnected socio-technical system, bounded by its environment. It maps how unexpected shifts in consumer confidence propagate across it between 2015 and 2025. Rather than isolating a single channel, the analysis examines the system as a whole, where a social subsystem of household sentiment interacts with a technical subsystem of market infrastructure. Sentiment shocks are identified as the unexpected component of the OECD Composite Consumer Confidence Index, and the dependency structure linking markets is estimated through return-based networks. The analysis combines the Diebold-Yılmaz connectedness framework, Granger-causal contagion testing, network centrality measures, and panel estimation with cross-sectionally consistent standard errors. Total connectedness reaches 81.6 percent, confirming a densely integrated system in which the Euro-area core acts as the principal return transmitter; sentiment-shock contagion, once corrected for multiple testing, is sparse rather than pervasive. A small set of economies occupies structurally central positions, yet the small-sample centrality diagnostic provides no robust evidence that threshold-network centrality predicts VAR-based net spillover roles. The findings refine the standard assumption that central nodes are necessarily the main propagators of systemic disturbance and offer concrete guidance for cross-border financial monitoring. This guidance is structural rather than a real-time monitoring signal since it derives from a full sample rather than a rolling or live analysis.