#Econsky: @nber.bsky.social WP just dropped! Survey sent to 850,000 firms on advanced tech use, nearly 1/2 million responses, representative of 4 million firms nation-wide. Early baseline (2017). X-rayed 75,000 startups. Many cool insights into actual AI use, key correlates, geo concentration.

the choice of LLM is not value neutral. Different LLMs reflect the ideology of its creator. Not so surprising across countries (Chinese vs French LLM, for example); more surprising for different LLMs developed in Western countries (OpenAI vs rest, for example). arxiv.org/pdf/2410.18417 #econsky

These two papers, taken together, really cause a rethinking of behavioral economies. Rather than having anomalous risk preferences; it looks like people have complexity aversion to "hard" decisions, especially on valuation, which drives behavioral anomalies. Herbert Simon ftw.

First skeet for the first paper as an AP! In *Anatomy of Treasury Market*, we study the drivers of U.S. Treasury yields over the past two decades using a flexible asset demand & supply system (with two amazing coauthors @haonanzhou.bsky.social and @manavchaudhary.bsky.social). Some highlights:

Eating too much cake is the sin of gluttony. However, eating too much pie is okay because the sin of pi is always zero. 🖖

Some of the most important lottery anomalies from the behavioral risk literature (e.g., probability weighting and loss aversion) actually have nothing to do with risk. They also arise in perfectly deterministic settings. Lead article in the latest AER issue: www.aeaweb.org/articles?id=...