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We decompose the textual data in a daily Norwegian business newspaper into news topics and investigate their predictive and causal role for asset prices. Our three main findings are: (1) a one unit innovation in the news topics predict roughly a 1 percentage point increase in close-to-open...
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of uncertainty. It uses machine learning techniques to classify different types of news instead of specifying a set of …
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Machine learning is an increasingly important and controversial topic in quantitative finance. A lively debate persists … as to whether machine learning techniques can be practical investment tools. Although machine learning algorithms can … a simple example of how investors can use machine learning techniques to forecast the cross-section of stock returns …
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Attention is a pivotal resource in the modern economy and plays an increasingly prominent role in economic analysis. We summarize research on attention from both psychology and economics, placing a particular emphasis on its capacity to explain numerous documented violations of classical...
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