Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/14326
Author(s): | Gomes, O. |
Date: | 2015 |
Title: | Sentiment cyclicality |
Volume: | 9 |
Number: | 2 |
Pages: | 104 - 134 |
ISSN: | 1802-4696 |
Keywords: | Sentiments Animal spirits Business cycles Rumor propagation New-Keynesian macroeconomics Optimized rationality |
Abstract: | The paper investigates the dynamics of a model of sentiment switching. The model is built upon rumor propagation theory and it is designed to uncover, for a given population, the social process through which optimistic individuals might become pessimistic or the other way around. The outcome is a scenario of perpetual motion with the shares of optimistic and pessimistic agents varying persistently over time. On a second stage, the cyclical sentiments setup is attached to a mechanism of formation of expectations based on the notion of optimized rationality, leading to a description of the macro economy in which aggregate output and inflation exhibit sentiment driven fluctuations. The proposed model contributes to a recent strand of macroeconomic literature that recovers the Keynesian notions of animal spirits, market sentiments and waves of optimism and pessimism. |
Peerreviewed: | yes |
Access type: | Open Access |
Appears in Collections: | BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica |
Files in This Item:
File | Description | Size | Format | |
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Sentiment Cyclicality.pdf | Versão Editora | 4,99 MB | Adobe PDF | View/Open |
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