Sentiment Spillover: Evidence from Two Environmental Disasters

36 Pages Posted: 1 Mar 2019

See all articles by Hongbum Lee

Hongbum Lee

NYU Stern School of Business

Date Written: February 11, 2019

Abstract

This paper studies the spillover effects of sentiment facilitated by social connection following the outbreak of two environmental disasters. Utilizing individual-level survey data from Gallup and county-level social connectivity data from Facebook, the paper finds that residents who are residing in more socially connected counties report significantly lower level of sentiment on the month of the event, and the effect persists through the next month. The findings are robust to alternative hypotheses, such as possible ties other than social connection and differing set of observable characterisitcs that alters underlying distribution of respondents’ sentiments in different regions.

Keywords: sentiment spillover, household finance, household sentiment, social network

JEL Classification: D10, D83, D84

Suggested Citation

Lee, Hongbum, Sentiment Spillover: Evidence from Two Environmental Disasters (February 11, 2019). Available at SSRN: https://ssrn.com/abstract=3332744 or http://dx.doi.org/10.2139/ssrn.3332744

Hongbum Lee (Contact Author)

NYU Stern School of Business ( email )

New York, NY
United States

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