Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
In this paper, I propose a novel way to model sentiments in asset prices. Under this new representation, sentiments, or animal spirits, are sparked by exogenous shocks to beliefs, but feed on the uncertainty generated by imperfect information. Sentiments cause expectations to deviate from optimal, information-based estimates, with their magnitude depending on the amount of uncertainty: the higher the uncertainty, the larger the scope for psychological attitudes to affect expectations.