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US recession prediction using statistical and natural language processing methods

2023· article· en· W4389482545 on OpenAlex

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

affAt least one author lists a Canadian institution in the pinned OpenAlex snapshot.

Bibliographic record

VenueTheoretical and Natural Science · 2023
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicMonetary Policy and Economic Impact
Canadian institutionsSimon Fraser UniversityUniversity of TorontoQueen's University
Fundersnot available
KeywordsArtificial intelligenceComputer scienceRecessionMachine learningEconometricsLogistic regressionSupport vector machineInterest rateEconometric modelStatistical modelNaive Bayes classifierConvolutional neural networkNatural language processingFinanceEconomicsMacroeconomics

Abstract

fetched live from OpenAlex

This study mainly predicts the recession in the United States. We build our model based on the data of more than ten recessions experienced by the United States since the mid-20th century. Our research can be divided into two parts, one part is a machine learning model constructed using econometrics theory, and the other part is a text analysis model based on natural language processing (NLP) techniques. We collected quarterly data from January 1, 1950, to September 1, 2020, to examine each historical recessionary period. We select key macroeconomic variables such as real GDP growth rate, unemployment rate, and interest rates as variables to build the machine learning model. Depending on the data type and model accuracy, we adopted three models, Support Vector Classification (SVC), Naive Bayes, and Logistic Regression, where the SVC model has the highest accuracy, above 80%. Regarding NLP models, we choose the reports based on Bank of International Settlements central bank speeches (BIS) to complete the relevant analysis. We evaluate bag-of-words and convolutional neural networks in conjunction with Epoch loss to determine how well the model's predictions match the actual data. Although we have debugged the NLP model many times, its accuracy still needs to be higher than that of the econometric model. How to effectively improve the prediction accuracy of the NLP model will be the main problem we hope to solve in the future.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.833
Threshold uncertainty score0.436

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0020.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.001
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.037
GPT teacher head0.327
Teacher spread0.289 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it