New research on the macroeconomic implications of advances in generative artificial intelligence (AI) concludes that the impact on GDP is likely to be modest. What’s more, according to the study by Daron Acemoglu of MIT prepared for the journal Economic Policy, there is no evidence that AI will reduce labour income inequality. Indeed, some groups, […]
The market for the most advanced models of generative artificial intelligence (AI) may become extremely concentrated, due to the high costs of computational resources and the vast quantities of data required for training. That is the one of the central findings of a new study by Anton Korinek and Jai Vipra, prepared for the journal […]
New analysis of data on US commuting zones over the past two decades indicates that those specialised in industries that experienced faster growth in adoption of artificial intelligence (AI) technologies have suffered a fall in employment relative to the local trend. The study by Alessandra Bonfiglioli, Rosario Crinò, Gino Gancia and Ioannis Papadakis, prepared for […]
Research by Joseph Harrington develops a new approach for uncovering economic evidence of an unlawful agreement between competing firms to adopt a third party’s pricing algorithm. The study, prepared for the journal Economic Policy, shows that if firms have an agreement, then the prices produced by the algorithm will be higher as more firms adopt […]
Some potential harms from artificial intelligence (AI), such as whether workers will be replaced, are all things that are hard to assess without real market deployment. In such circumstances, as Joshua Gans explains in a new study prepared for the journal Economic Policy, slowing the pace of AI research and implementation doesn’t make sense. His […]
Over the course of the 2010s, occupations that are potentially more exposed to technologies enabled by artificial intelligence (AI) increased their employment share in Europe. This was particularly the case for occupations with a relatively higher proportion of younger and skilled workers. These are the central findings of new research by Stefania Albanesi, António Dias […]
An international agreement on automatic exchange of information (AEOI) by national public authorities has been effective in limiting cross-border deposits by less sophisticated investors seeking to evade taxes. But it might not be equally effective for those who are able to use more complex administrative structures, such as trusts and shell companies, to limit their […]
The energy price guarantee introduced by the UK government in 2022 to protect families from soaring gas and electricity bills disproportionately benefitted well-off households. What’s more, the guarantee weakened incentives for all households to invest in energy efficiency upgrades. These are among the findings of research by Thiemo Fetzer, Ludovica Gazze and Menna Bishop, which […]
Typically recessions discourage entrepreneurs from starting new businesses: for example, during the Great Recession of the late 2000s, a ‘generation’ of start-ups went missing, which contributed to a slow recovery in employment. But evidence for the UK two years after the pandemic started suggests a very different story: the pandemic inspired many entrepreneurs to start […]
Individuals’ ideological beliefs are far more important than their own labour market status in influencing their support for strong job protection for workers on permanent contracts. That is the key finding from analysis of a new survey of 7,000 individuals in 14 advanced countries conducted by Romain Duval, Yi Ji, Chris Papageorgiou, Ippei Shibata and […]
