Working Paper: CEPR ID: DP18537
Authors: Michael McMahon; Matthew Naylor
Abstract: Policymakers communicate complex messages to multiple audiences; we investigate how complexity impacts messages 'getting through' effectively. We distinguish 'semantic' complexity - the focus of existing empirical studies - from 'conceptual' complexity, which better reflects information-processing costs identified by theory. We conduct an information-provision experiment using central bank communications; conceptual complexity - captured by a novel quantitative measure we construct - matters more for getting through. This is true even for technically trained individuals. Bank of England efforts to simplify language have reduced traditional semantic measures, but conceptual complexity has actually increased. Our findings can direct efforts for effective policy communication design.
Keywords: Information transmission; Central bank communications; Linguistic complexity; Rational inattention
JEL Codes: C83; E58; E61; E70
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| semantic complexity (A12) | perceived understanding (D83) |
| semantic complexity (A12) | actual understanding (D84) |
| semantic complexity (A12) | sentiments towards the central bank (E58) |
| complexity (C60) | perceived understanding (D83) |
| complexity (C60) | actual understanding (D84) |
| complexity (C60) | sentiments towards the central bank (E58) |
| conceptual complexity (D80) | perceived understanding (D83) |
| conceptual complexity (D80) | actual understanding (D84) |
| conceptual complexity (D80) | sentiments towards the central bank (E58) |
| conceptual complexity (low to medium) (C60) | perceived understanding (D83) |
| conceptual complexity (medium to high) (C60) | perceived understanding (D83) |