IDEAS home Printed from https://ideas.repec.org/p/cge/wacage/810.html

A Practitioner's Guide to Using Large Language Models and Generative AI in Economic History

Author

Listed:
  • Ferrara, Andreas

    (University of Pittsburgh, Department of Economics, and NBER)

Abstract

Large language models (LLMs) are lowering the entry barriers to working with exciting data sources that used to require strong data science skills, such as handwritten ledgers, text, images, or sound recordings. This guide provides an introduction for researchers who are new to LLMs. It sets out a step-by-step workflow for turning a research idea into working code and data, and describes the four main ways of interacting with an LLM: the chat window, editor-integrated assis tants, agentic coding tools, and the API. It then works through the decisions a practitioner meets in sequence, beginning with whether an LLM is the right tool and whether the data are allowed to be sent to one, then how to select models, write prompts, manage context limits, and control costs, and finally how to validate, reproduce, document, and correct LLM-generated measures in regression settings. A review of recent research shows how these tools already extract, link, har monize, and classify historical data at scale. Four worked examples with replication files illustrate the use of LLMs. They classify emotions in paintings, link census records without names, measure newspaper salience and sentiment around the 1882 Chinese Exclusion Act, and score the emotional delivery of Franklin D. Roosevelt's wartime speeches. The guide also condenses the workflow, the best-practice recommendations, and the preparation of replication packages into summary tables and checklists to aid applied economists.

Suggested Citation

  • Ferrara, Andreas, 2026. "A Practitioner's Guide to Using Large Language Models and Generative AI in Economic History," CAGE Online Working Paper Series 810, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:810
    as

    Download full text from publisher

    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp810.2026.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • N0 - Economic History - - General
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cge:wacage:810. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jane Snape (email available below). General contact details of provider: https://edirc.repec.org/data/dewaruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.