Analyzing public sentiment toward economic stimulus using natural language processing

Abstract

Purpose This study aims to investigate public sentiment toward economic stimulus using textual analysis. Specifically, it analyzes Twitter’s public opinion, emotion-based sentiment and topics related to COVID-19 economic stimulus packages. Design/methodology/approach This study applies natural language processing techniques, such as sentiment analysis, t-distributed stochastic neighbor embedding and semantic network analysis, to a global data set of 88,441 tweets from January 2020 to December 2021 extracted from the Twitter platform, discussing COVID-19 economic stimulus packages. Findings Results show that in the fourth quarter of 2021, there is a declining trend of positive sentiment (−5%) and an increasing trend of negative sentiment (14%), which may indicate the perceived inadequacy of COVID-19 stimulus measures. Topic modeling identifies seven topics, highlighting the necessity of stimulus in the education sector. Practical implications The big-data findings of this study provide a better understanding of public sentiment about economic stimulus for regulators and policymakers, which can help in formulating more effective fiscal and monetary policies. Originality/value Public sentiment is a significant concern for regulators because of its associated ambiguity, such as how to design stimulus packages and evaluate the effectiveness of previous measures. This study applies natural language processing, contributing to the growing literature on designing effective economic stimulus.