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This paper investigates the role of sentiment in the US economy from 1920 to 1934 using digitised articles from The Wall Street Journal. We derive a monthly sentiment index and use a 10‐variable vector error correction model to identify sentiment shocks that are orthogonal to fundamentals. We show the timing and strength of these shocks and their resultant effects on the economy using historical decompositions. Intermittent impacts of up to 15 per cent on industrial production, 10 per cent on the S&P 500 and bank loans, and 37 basis points for the credit risk spread suggest a large role for sentiment. [ABSTRACT FROM AUTHOR]

How do people form expectations about the future? We use amateur and expert investors' expectations about financial asset prices to study this question. Three experiments contrast the rational expectations assumption from neoclassical economics (investors forecast according to neoclassical financial theory) against two psychological theories of expectation formation—behaviorally informed expectations (investors understand empirical market anomalies and expect these anomalies to occur) and narrative expectations (investors use narrative thinking to predict future prices). Whereas neoclassical financial theory maintains that past public information cannot be used to predict future prices, participants used company performance information revealed before a base price quotation to project future price trends after that quotation (Experiment 1), contradicting rational expectations. Importantly, these projections were stronger when information concerned predictions about a company's future performance rather than actual data about its past performance, suggesting that people not only rely on financially irrelevant (but narratively relevant) information for making predictions but erroneously impose temporal order on that information. These biased predictions had downstream consequences for asset allocation choices (Experiment 2), and these choices were driven in part by affective reactions to the company performance news (Experiment 3). There were some mild effects of expertise, but overall the effects of narrative appear to be consistent across all levels of expertise studied, including professional financial analysts. We conclude by discussing the prospects for a narrative theory of choice that provide new microfoundational insights about economic behavior. [ABSTRACT FROM AUTHOR]

We study the psychology at the intersection of two social trends. First, as markets become increasingly specialized, consumers must increasingly defer to outside experts to decide among complex products. Second, people divide themselves increasingly into moral tribes, defining themselves in terms of shared values with their group and often seeing these values as being objectively right or wrong. We tested how and why these tribalistic tendencies affect consumers' willingness to defer to experts. We find that consumers are indeed tribalistic in which experts they find convincing, preferring products advocated by experts who share their moral values (Study 1), with this effect generalizing across product categories (books and electronics) and measures (purchase intentions, information‐seeking, willingness‐to‐pay, product attitudes, and consequential choices). We also establish the mechanisms underlying these effects: because many consumers believe moral matters to be objective facts, experts who disagree with those values are seen as less competent and therefore less believable (Studies 2 and 3), with this effect strongest among consumers who are high in their belief in objective moral truth (Study 4). Overall, these studies seek not only to establish dynamics of tribalistic deference to experts but also to identify which consumers are more or less likely to fall prey to these tribalistic tendencies. [ABSTRACT FROM AUTHOR]

Discusses the ethical good practice when data from patients was disclosed in medical publications. Position of psychoanalysts on the disclosure of patient data; Claim of psychoanalytical psychotherapists on their profession; Issues facing the self-regulation of the profession of psychoanalytic psychotherapy.