Jel classification codes

What Are JEL Classification Codes?

JEL classification codes are a standardized system used to categorize and organize scholarly economic literature. Developed by the American Economic Association (AEA), these alphanumeric codes provide a hierarchical framework for indexing articles, dissertations, books, and working papers within the broad field of economics and academic research classification. The system helps researchers, librarians, and publishers efficiently navigate the vast body of economic scholarship, enabling easier discovery and analysis of specific topics.

History and Origin

The JEL classification system originated with the Journal of Economic Literature (JEL), which began publication in 1969. The American Economic Association established this system as a means to inform its members of research developments across various fields of economics⁶, ⁷. Over time, the JEL codes evolved into the de facto standard for classifying economic research worldwide⁴, ⁵. The system has undergone incremental changes and additions since a significant update in 1991, expanding to include over 850 subclasses to accommodate the growing complexity and specialization within the discipline. Today, the AEA continues to maintain and update the comprehensive JEL classification system, which serves as the backbone for EconLit, a premier bibliographic database for economic research³.

Key Takeaways

• JEL classification codes provide a universal, hierarchical system for categorizing economic research.
• Maintained by the American Economic Association, the codes streamline the organization and retrieval of scholarly economic literature.
• The system includes 20 primary categories, each with multiple sub-categories, covering the entire spectrum of economic topics.
• JEL codes are widely adopted by academic journals, research institutions, and databases like EconLit for indexing and searching.
• While highly useful, the assignment of JEL codes can sometimes involve subjective interpretation, leading to potential inconsistencies.

Interpreting the JEL Classification Codes

JEL classification codes are structured hierarchically, moving from broad categories to increasingly specific sub-fields. Each code consists of an alphanumeric sequence, typically a letter followed by two numbers. The initial letter denotes one of 20 primary categories, such as 'G' for Financial Economics or 'E' for Macroeconomics. The first number then specifies a secondary category, and the second number indicates a tertiary, more granular topic within that sub-category.

For instance, the code G11 represents "Portfolio Choice; Investment Decisions" within the broader "General Financial Markets" (G1) category under "Financial Economics" (G). This structured approach allows for precise data classification of economic content. Researchers often assign multiple JEL codes to a single work to capture all relevant themes and ensure comprehensive indexing.

Hypothetical Example

Imagine an economist publishes a journal article titled "The Impact of Interest Rate Changes on Household Savings Behavior." To accurately categorize this paper using JEL classification codes, the author or publisher would consider the primary and secondary topics addressed.

1. Macroeconomics: Since interest rates and household savings are aggregate economic phenomena, the paper falls under Macroeconomics, which is JEL category E.
2. Monetary Economics: The focus on interest rates points to monetary policy. Within Macroeconomics, "Monetary Economics; Central Banking; Aggregate Supply of Money and Credit" is category E5.
3. Household Behavior: The specific impact on savings behavior relates to household decisions. Within Microeconomics, there is a category for "Household Behavior and Family Economics," D1. However, in the context of aggregate saving, the E5 code is more appropriate for the monetary aspect. More specific to the saving, we look within E for relevant subcategories. "Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy" is category E2.
4. Specific Sub-topic: Combining these, a highly relevant JEL code might be E21, which refers to "Consumption; Saving; Wealth." Another applicable code could be E52, which covers "Monetary Policy; Central Bank Institutions, Regulation, and Related Macroeconomic Issues." Therefore, the article might be assigned JEL codes E21 and E52.

Practical Applications

JEL classification codes are fundamental tools for organizing and accessing economic scholarship across various platforms. They are extensively used by:

• Academic Databases: Databases like EconLit, maintained by the AEA, rely on JEL codes to index and make searchable millions of journal articles, books, and working papers. This enables researchers to perform targeted searches for specific topics like econometrics or game theory.
• Research Institutions: Organizations such as the National Bureau of Economic Research (NBER) utilize JEL codes to categorize their vast collection of working papers, making it easier for scholars to find relevant research. For example, an NBER working paper might specify JEL codes like G11 (Portfolio Choice; Investment Decisions) or H21 (Taxation of Individual Income; Consumption; Wealth) to identify its field. One study found that papers in top economics journals typically provide an average of two JEL codes².
• Publishers: Academic publishers require authors to submit JEL codes with their manuscripts, facilitating the editorial process and ensuring proper dissemination.
• Research Trend Analysis: By analyzing the prevalence of certain JEL codes over time, economists and bibliometricians can identify emerging research areas, shifting academic interests, and the evolution of sub-disciplines like public economics or labor economics.
• Conferences and Calls for Papers: Economic conferences often use JEL codes to group submissions into thematic sessions, ensuring that presentations on related topics such as international economics are scheduled together.

The standardized nature of JEL codes ensures a consistent approach to classifying economic information globally, aiding in discoverability and cross-referencing.

Limitations and Criticisms

Despite their widespread utility, JEL classification codes face certain limitations and criticisms. One primary concern is the potential for subjective assignment. While guidelines exist, the interpretation of a paper's primary focus and the most appropriate JEL codes can vary between authors, editors, and indexers. This variability can lead to inconsistencies in how research is categorized, potentially hindering precise retrieval or misrepresenting a paper's true thematic scope¹.

For example, a paper on the economic effects of climate change might be assigned codes related to environmental economics (Q5), economic growth (O4), or even public economics (H2), depending on the emphasis. This ambiguity can dilute the effectiveness of the JEL classification codes as a perfectly consistent indexing tool. Additionally, as economic research evolves and new interdisciplinary fields emerge, the JEL system must constantly adapt to capture these nuances, which can sometimes lag behind the rapid pace of academic innovation. The hierarchical structure, while beneficial, can also occasionally force complex, multi-faceted research into overly narrow or general categories.

JEL Classification Codes vs. NAICS Codes

While both JEL classification codes and North American Industry Classification System (NAICS) codes serve as classification systems, they differ fundamentally in their purpose and application.

JEL classification codes are a tool for organizing knowledge within the academic discipline of economics, helping researchers find relevant studies on topics like behavioral finance or microeconomic theory. NAICS codes, conversely, are used by government agencies and businesses to classify industries, facilitating economic data collection, statistical analysis, and regulatory oversight of commercial activities. While an academic paper might analyze a specific industry using JEL codes, the industry itself would be identified by its NAICS code.

FAQs

What does JEL stand for?

JEL stands for Journal of Economic Literature, which is the academic journal published by the American Economic Association (AEA) that pioneered the classification system.

How many main JEL categories are there?

There are 20 main JEL categories, each represented by a single capital letter from A to Z (excluding some letters not used). These cover broad areas of economics like Macroeconomics, Microeconomics, and Financial Economics.

Who uses JEL classification codes?

JEL classification codes are used by economists, academic journals, research institutions, university libraries, and databases like EconLit to categorize, search for, and organize economic scholarly works.

Are JEL codes assigned automatically or manually?

While automated tools and algorithms are increasingly used to suggest JEL codes, final assignment often involves a degree of manual review and expert judgment by authors, journal editors, or database curators to ensure accuracy.

Can a paper have more than one JEL code?

Yes, it is common for a single paper to be assigned multiple JEL classification codes if it covers several distinct but related economic topics or falls at the intersection of different sub-fields.