du Plessis, Emile - In: Computational Economics 65 (2024) 3, pp. 1265-1298
This paper introduces statistical models Wordscores and Wordfish to study and predict banking crises. While Wordscores is akin to supervised learning, Wordfish is analogous to unsupervised learning. Both methods estimate the position of banking distress on a tranquil-to-crisis spectrum. Findings...