Econometrics Meets Sentiment: An Overview of Methodology and Applications
Journal of Economic Surveys, Vol. 34, Issue 3, pp. 512-547, 2020
39 Pages Posted: 12 Jan 2016 Last revised: 3 Feb 2021
Date Written: May 21, 2020
The advent of massive amounts of textual, audio, and visual data has spurred the development of econometric methodology to transform qualitative sentiment data into quantitative sentiment variables, and to use those variables in an econometric analysis of the relationships between sentiment and other variables. We survey this emerging research field and refer to it as sentometrics, which is a portmanteau of sentiment and econometrics. We provide a synthesis of the relevant methodological approaches, illustrate with empirical results, and discuss useful software.
Keywords: qualitative data, sentiment analysis, sentometrics, survey, textual analysis
JEL Classification: G11, C58
Suggested Citation: Suggested Citation