Type of uncertainty matters for modelling – Norges Bank paper

Author develops method to “disentangle” various forms of uncertainty

Norges Bank HQ, Oslo
Norges Bank headquarters, Oslo
Photo: Espen Schive

Uncertainty can have both good and bad effects, so identifying the correct kind matters when studying its effects, a paper published on April 18 by Norges Bank finds.

Vegard Høghaug Larsen uses ‘Latent Dirichlet Allocation’, a form of text analysis, in the paper Components of uncertainty. This allows him to “disentangle” different types of uncertainty by analysing news articles. The paper differs from similar work by employing a “topic model”, which focuses on types of news rather than relevant

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account