Insights on Animal Spirits

Given the significance of behavioral insights on public policies and markets, this study aimed to explore the bidirectional impacts among Twitter-based Uncertainty Index (TEU), Standard and Poor’s 500 valuations, and the prices of Gold and Oil during the COVID pandemic and the Russo-Ukrainian War. The impact of uncertainty on the aforementioned dimensions has been examined. Yet, the dynamics between uncertainty and other variables across distinct periods warrant further investigation (Alamah et al., Econ. Lett. 234:111463). Additionally, analyzing how the S&P 500 valuation, along with Gold and Oil prices, influence the uncertainty reflected in Twitter sentiment, represents an innovative facet of this chapter. In this sense, Lag-Augmented VAR (LA-VAR) regression was applied. The findings indicate bidirectional effects only during the Covid pandemic crisis. Furthermore, no effect of S&P 500 valuation, Gold and Oil prices on the uncertainty was verified in both periods.