Investor Sentiment and Employment

Abstract

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Optimal resource allocation in a representative investor economy

“…This is documented, for instance, in the study by Arif and Lee (2014), who evaluate the relation between the sentiment of investors, the expected equity returns and the level of aggregate investment; not surprisingly, they conclude that periods when sentiments of optimism dominate are also periods in which the investment of firms reaches the highest observable levels. Montone and Zwinkels (2015) also arrive to the conclusion that investor sentiments have real effects; specifically, these authors discuss the correlation between the sentiment of capital owners and the growth of employment and output.…”

Pricing Protest: The Response of Financial Markets to Social Unrest

“…For instance, social unrest could increase uncertainty in production and investment, and influence sentiment and confidence as well as the likelihood and success of economic reforms. All of these may have potentially long-lasting effects on the real economy (see Bloom et al (2007), Bloom (2009), Bloom (2014) and Montone and Zwinkels (2020)).…”