Does Finance Benefit Society? A Language Embedding Approach
Year: 2025
Type: article
Abstract: We measure popular sentiment toward finance by applying a large language model to millions of books published in eight countries over hundreds of years. We extensively validate this measure both internally and externally. We document persistent differences in finance sentiment across countries despite ample time-series variation. Books written in the languages of more capitalist countries discuss finance in a more positive context. Finance sentiment is correlated with survey-based measures of financial market participation and income inequality. Finance sentiment declines one year before rather than after financial crises. Positive shocks to finance sentiment are followed by higher output and credit growth.
Source: Review of Financial Studies
DOI: 10.1093/rfs/hhaf012
Authors: Manish Jha, Hongyi Liu, Asaf Manela
Institutions: Georgia State University, Washington University in St. Louis
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4408141491