Econometrics Meets Sentiment: An Overview of Methodology and Applications
42 Pages Posted: 12 Jan 2016 Last revised: 11 Aug 2019
Date Written: May 1, 2019
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 composition of sentiment and econometrics. We provide an overview of the generic steps in a typical econometric analysis of sentiment from textual, audio and visual data. For each of those steps, we summarize 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