Beyond Keywords: Leveraging Generative LLMs and Label Aggregation to Classify Economic Policy Uncertainty in News Articles

We propose an AI economist agent for economic and financial scenario analysis. Scenario design often requires analysts to assess emerging risks with limited historical precedent, combine information from many sources, and translate qualitative mechanisms into internally consistent quantitative paths. Large language models (LLMs) can search and synthesize this information, but fluent narratives alone do not establish the model-based calculations needed for economic conclusions. Our framework uses LLM agents to plan the analysis, retrieve relevant evidence, and organize economic mechanisms, while registered quantitative models generate numerical outcomes and predefined tests determine whether intermediate results can be used in the final report. We apply the framework to European macro-financial stress scenarios and bank capital analysis. The empirical analysis evaluates retrieval of economic mechanisms, scenario construction, model execution, and report generation under a historical information cutoff. The results show how the AI economist agent can combine flexible evidence retrieval and scenario construction while keeping the resulting analysis linked to identifiable sources and explicit model calculations.

Can humans tell whether a news article was written by a person or a large language model (LLM)? We investigate this question using JudgeGPT, a study platform that independently measures source attribution (human vs. machine) and authenticity judgment (legitimate vs. fake) on continuous scales. From 2,318 judgments collected from 1,054 participants across content generated by six LLMs, we report five findings: (1) participants cannot reliably distinguish machine-generated from human-written text (p > .05, Welch's t-test); (2) this inability holds across all tested models, including open-weight models with as few as 7B parameters; (3) self-reported domain expertise predicts judgment accuracy (r = .35, p < .001) whereas political orientation does not (r = -.10, n.s.); (4) clustering reveals distinct response strategies ("Skeptics" vs. "Believers"); and (5) accuracy degrades after approximately 30 sequential evaluations due to cognitive fatigue. The answer, in short, is no: humans cannot reliably tell. These results indicate that user-side detection is not a viable defense and motivate system-level countermeasures such as cryptographic content provenance.

Do large language models (LLMs) exhibit systematic ideological bias when reasoning about economic causal effects? As LLMs are increasingly used in policy analysis and economic reporting, where directionally correct causal judgments are essential, this question has direct practical stakes. We present a systematic evaluation by extending the EconCausal benchmark with ideology-contested cases - instances where intervention-oriented (pro-government) and market-oriented (pro-market) perspectives predict divergent causal signs. From 10,490 causal triplets (treatment-outcome pairs with empirically verified effect directions) derived from top-tier economics and finance journals, we identify 1,056 ideology-contested instances and evaluate 20 state-of-the-art LLMs on their ability to predict empirically supported causal directions. We find that ideology-contested items are consistently harder than non-contested ones, and that across 17 of 20 models, accuracy is systematically higher when the empirically verified causal sign aligns with intervention-oriented expectations than with market-oriented ones. Moreover, when models err, their incorrect predictions disproportionately lean intervention-oriented, and this directional skew is not eliminated by one-shot in-context prompting. These results highlight that LLMs are not only less accurate on ideologically contested economic questions, but systematically less reliable in one ideological direction than the other, underscoring the need for direction-aware evaluation in high-stakes economic and policy settings.