New WP! @andrea_eisfeldt and I have put together an overview of Generative AI as a shock to technology in the economy at large and to the finance industry and financial research "technology" in particular, for the Annual Review of Financial Economics.

Re: Lawsuits over LLMs storing books verbatim -> this means that LLMs could be much more powerful while being smaller if they encoded fewer facts, more capabilities. Should make one MORE optimistic about AI, rather than less - as it portends edge deployment of strong models.

RT @rohanpaul_ai: Workers want AI to erase drudge work, and AI agents must learn when to step back rather than step in. The paper builds a….

RT @emollick: An example of why I think current LLMs are enough to change lots of work even if they don’t get better, once we start integra….

RT @samgyetvay: @TheStalwart @arpitrage increasing in NYC/SF would reduce prices in many other cities because they’re attractors and hubs i….

This is a great teaching device for getting students over the "how do I even start" hurdle!.

RT @raffasadun: Looking forward to the next @nberpubs Organizational Economics Working Group meeting on April 10/11, coorganized with @and….

Is this Berk & Green (JPE 2004) for bodies? If all bodies grow to the maximum sustainable size that is compatible with moving sufficiently fast, then body size (~ assets under management) is a good indicator of underlying efficiency of the transport mode (~alpha) in equilibrium?.

RT @osus_info: 📢 Tomorrow! Join us @osus_info at 11:30 ET, 4:30 pm (UK), or 5:30 pm (Euro)! . Caitlin Gorback (UT Austin) presents "The Fi….

Vibe-coding’s complement is unit testing. If the writing of code is commodified, the validation of output becomes scarce.

Link to paper is here: #Econtwitter.

We find non-RE wealth increases of HHs with high HO affinity limited to those in the right housing markets at the right time & who happen to see high price increases, NOT a general consequence of homeownership - so housing policy is limited if housing booms are not guaranteed.

We obtain restricted HRS data to see if affinity for HO impacts the portfolios of foreign-born retirees: as expected, they are more likely to own a home & own more RE in their portfolios. Total non-RE retirement wealth is also higher for those who have HO affinity! But why?.

We show that AFFINITY matters for housing cycles and effects of credit supply shocks. High HO affinity households enter more into homeownership during 2000s housing boom, default less during the GFC - see paper for causal evidence on greater response to credit supply shocks.

It's hard to find exogenous changes in homeownership (HO) to study effects on HH finance. We build on literature looking at role of experiences/origins driving financial choices and show that HO in origin countries (HOCO) drives HO of foreign-born in the US! (15% passthrough)

🚨 New working paper with @CGorback !. We ask what happens when households are more likely to WANT to own a home for cultural reasons? We find homeownership increases, they're more responsive to credit supply shocks, and more of their retirement portfolios are in real estate. 🧵

RT @emollick: Organizational innovation is the missing piece for actually getting value out of AI. You need a vision for the future of orga….

RT @mattbeane: Risky: those with agency and curiosity will race ahead of others much more, must faster. Status hierarchies will stretch out….

RT @nberpubs: Revealed-preference evidence showing that tech workers value remote work so highly they're willing to accept a 25 percent pay….

I am worried LLM researchers sometimes bury the lede with regard to "should we trust these systems". Framing below is: LLMs are failing to "earn human trust". But it turns out it's the humans who cannot be trusted - even seeing the LLM's answer, the humans do worse than the LLM!

RT @AIatWharton: This fall, we were joined by @AnastassiaFedyk, @k_mcelheran, and @gregorschub to hear what their research can tell us abou….