We examine sentiment variables as new predictors for US recessions. We combine sentiment variables with either … factors. The strong importance of the sentiment variables is documented both in-sample and out-of-sample. … classical recession predictors or with common factors based on a large panel of macroeconomic and ?nancial variables. Sentiment …

We study the role of sentiment variables as predictors for US recessions. We combine sentiment variables with either … factors. The strong importance of the sentiment variables is documented both in-sample and out-of-sample. … classical recession predictors or common factors based on a large panel of macroeconomic and financial variables. Sentiment …