TY - JOUR VL - 15 PB - Annual Reviews A1 - Hansen, Stephen Y1 - 2023/09// N2 - This article provides an overview of the methods used for algorithmic text analysis in economics, with a focus on three key contributions. First, we introduce methods for representing documents as high-dimensional count vectors over vocabulary terms, for representing words as vectors, and for representing word sequences as embedding vectors. Second, we define four core empirical tasks that encompass most text-as-data research in economics and enumerate the various approaches that have been taken so far to accomplish these tasks. Finally, we flag limitations in the current literature, with a focus on the challenge of validating algorithmic output. AV - public JF - Annual Review of Economics EP - 688 N1 - © 2023 by the Author(s). This work is licensed under a Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/). ID - discovery10171178 KW - text as data KW - topic models KW - word embeddings KW - large language models KW - transformer models KW - JEL C18 KW - JEL C45 KW - JEL C55 TI - Text Algorithms in Economics SP - 659 UR - https://www.annualreviews.org/journal/economics ER -