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    Home»Economy»The Fed – Validating Large Language Model Annotations
    Economy

    The Fed – Validating Large Language Model Annotations

    AdminBy AdminApril 1, 2026No Comments1 Min Read
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    March 2026

    Validating Large Language Model Annotations

    Anne Lundgaard Hansen

    Abstract:

    This paper proposes a validation framework for LLM-generated measurements when reliable benchmarks are unavailable. Validity is established by testing whether an LLM can reconstruct passages from annotated labels while maintaining semantic consistency with the original text. The framework avoids circular reasoning by establishing testable prerequisite properties that must be met for a validation to be considered successful. Application to news article data demonstrates that the framework serves as a practical alternative to human benchmarking, which offers advantages in objectivity, scalability, and cost-effectiveness while identifying cases where LLMs capture economic meaning that human evaluators miss.

    Keywords: Large Language Models, Validation Framework, Text Annotation, Sentiment Analysis.

    DOI: https://doi.org/10.17016/FEDS.2026.020


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    Last Update:
    March 30, 2026

    Annotations Fed Language Large Model Validating
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