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Text as Data - Stanford University

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.

Introduction N ew technologies have made available vast quantities of digital text, recording ... ics is that text is inherently high dimensional. Suppose that we have a sample of documents, each of which is w words long, ... can be summarized in three steps: 1. Represent raw text as a numerical array C; 2.

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