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This paper uses the S&P 500 index as a proxy for the market and follows the methodology in Bijl et al. (2016) to compute an investor attention index by searching company names listed on the S&P 500 index from 2010 to 2019 on Google Trends. Building upon existing literature, this paper proposes a new model that explains the relationship between trade policy uncertainty (TPU) and investor attention. It is shown that these two variables are positively correlated.
macroeconomics, investor sentiment, trade policy uncertainty
Dong, Lily, "How Does Trade Policy Uncertainty (TPU) affect investor sentiment?" (2021). 2021 Honors Economics Posters. 5.