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EcoFinBench – a natural language processing benchmark for economics and finance

Author

Listed:
  • Max Ahrens

    (Maihem.ai)

  • Dragos Gorduza

    (Bank of England)

  • Micheal McMahon

    (University of Oxford)

Abstract

We introduce EcoFinBench, a natural language processing (NLP) benchmark suite for the domains of economics and finance. We comprehensively test a large array of NLP models across multiple domain-specific data sets for sentence classification. Specifically, we evaluate dictionary models, word count models, topic models, and modern transformer models. Furthermore, we introduce two new data sets to the research community. The Bluebook data set for text-only sentiment analysis in monetary policy, and the Greenbook data set for multimodal (text and numeric) sentiment analysis. We focus on data sets that require the models to work with relatively few data points and long average text lengths – typical characteristics of data sets in the economic and financial domain. We find that, dictionary models – still widely used as a default text analysis tool in economics and finance – underperform substantially across all evaluated data sets. From our findings, we conclude that given the underperformance of existing solutions in the multimodal domain, future modelling work is needed. With our benchmark suite we aim to lay the foundation for a systematic assessment on the most commonly used NLP models in economics and finance. To our knowledge, we are the first to provide such holistic benchmarking assessment for economics and finance.

Suggested Citation

  • Max Ahrens & Dragos Gorduza & Micheal McMahon, 2025. "EcoFinBench – a natural language processing benchmark for economics and finance," Bank of England Staff Working Paper series 1163, Bank of England.
  • Handle: RePEc:boe:boeewp:023285
    as

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    File URL: https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2025/ecofinbench-natural-language-processing-benchmark-economics-finance.pdf
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    References listed on IDEAS

    as
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    3. Markus Leippold, 2023. "Sentiment Spin: Attacking Financial Sentiment with GPT-3," Swiss Finance Institute Research Paper Series 23-11, Swiss Finance Institute.
    4. Pekka Malo & Ankur Sinha & Pekka Korhonen & Jyrki Wallenius & Pyry Takala, 2014. "Good debt or bad debt: Detecting semantic orientations in economic texts," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 65(4), pages 782-796, April.
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    7. Tim Loughran & Bill Mcdonald, 2011. "When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10‐Ks," Journal of Finance, American Finance Association, vol. 66(1), pages 35-65, February.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • Y10 - Miscellaneous Categories - - Data: Tables and Charts - - - Data: Tables and Charts
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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