Transcription of Text as Data - Stanford University
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Journal of Economic Literature 2019, 57(3), 535 574 IntroductionNew technologies have made available vast quantities of digital text, recording an ever-increasing share of human interac-tion, communication, and culture. For social scientists, the information encoded in text is a rich complement to the more structured kinds of data traditionally used in research, and recent years have seen an explosion of empirical economics research using text as take just a few examples: In finance, text from financial news, social media, and company filings is used to predict asset price movements and study the causal impact of new information. In macroeconomics, text is used to forecast variation in inflation and unemployment, and estimate the effects of policy uncertainty.
The second step is where high-dimensional statistical methods are applied. In a classic example, the data is the text of emails, and the unknown variable of interest V is an indi-cator for whether the email is spam. The prediction Vˆ determines whether or not to send the email to a spam filter. ...
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