eprintid: 10171178 rev_number: 14 eprint_status: archive userid: 699 dir: disk0/10/17/11/78 datestamp: 2023-06-05 11:10:11 lastmod: 2023-11-02 13:28:03 status_changed: 2023-06-05 13:33:09 type: article metadata_visibility: show sword_depositor: 699 creators_name: Hansen, Stephen title: Text Algorithms in Economics ispublished: pub divisions: UCL divisions: B03 divisions: C03 divisions: F24 keywords: text as data, topic models, word embeddings, large language models, transformer models, JEL C18, JEL C45, JEL C55 note: © 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/). abstract: 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. date: 2023-09 date_type: published publisher: Annual Reviews official_url: https://www.annualreviews.org/journal/economics oa_status: green full_text_type: pub language: eng primo: open primo_central: open_green verified: verified_manual elements_id: 2027247 doi: 10.1146/annurev-economics-082222-074352 lyricists_name: Hansen, Stephen lyricists_id: SEKHA24 actors_name: Hansen, Stephen actors_id: SEKHA24 actors_role: owner full_text_status: public publication: Annual Review of Economics volume: 15 pagerange: 659-688 citation: Hansen, Stephen; (2023) Text Algorithms in Economics. Annual Review of Economics , 15 pp. 659-688. 10.1146/annurev-economics-082222-074352 <https://doi.org/10.1146/annurev-economics-082222-074352>. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/10171178/7/Hansen_Text%20Algorithms%20in%20Economics_VoR.pdf