Economics
Achieving incentive compatibility under informational decentralization is impossible within the class of direct and revelation-equivalent mechanisms typically studied in economics and computer science. We show that these impossibility…
Can artificial intelligence outperform humans at strategic foresight -- the capacity to form accurate judgments about uncertain, high-stakes outcomes before they unfold? We address this question through a fully prospective prediction…
Do online narratives leave a measurable imprint on prices in markets for digital or cultural goods? This paper evaluates how community attention and sentiment relate to valuation in major Ethereum NFT collections after accounting for time…
We study fuzzy regression discontinuity designs with covariates and characterize the weighted averages of conditional local average treatment effects (WLATEs) that are point identified. Any identified WLATE equals a Wald ratio of…
Given a set of $n$ individuals with strict preferences over $m$ indivisible objects, the Random Serial Dictatorship (RSD) mechanism is a method for allocating objects to individuals in a way that is efficient, fair, and…
People learn about opportunities and actions by observing the experiences of their friends. We model how homophily -- the tendency to associate with similar others -- affects both the endogenous quality and diversity of the information…
Generative AI has the potential to transform how firms produce output. Yet, credible evidence on how AI is actually substituting for human labor remains limited. In this paper, we study firm-level substitution between contracted online…
This paper enhances the classical Solow model of economic growth by integrating L\'evy noise, a type of non-Gaussian stochastic perturbation, to capture the inherent uncertainties in economic systems. The extended model examines the impact…
We propose a solution and a mechanism for two-agent social choice problems with large (infinite) policy spaces. Our solution is an efficient compromise rule between the two agents, built on a common cardinalization of their preferences. Our…
Two decades of research on the euro's trade effects have produced estimates ranging from 4% to 30%, with no consensus on the magnitude. We find evidence that this divergence may reflect genuine heterogeneity in the euro's trade effect…
We introduce heterogeneous R&D productivities into an endogenous R&D network formation model, generalizing the framework of Goyal and Moraga-Gonz\'alez (2001). Heterogeneous productivities endogenously create asymmetric gains from…
The Bank of Korea (BoK) regularly publishes the Economic Outlook, offering forecasts for key macroeconomic variables such as GDP growth, inflation, and unemployment rates. This study examines whether the BoK's inflation forecasts exhibit…
Whether the goal is to analyze voting behavior, locate facilities, or recommend products, the problem of translating between (ordinal) rankings and (numerical) utilities arises naturally in many contexts. This task is commonly approached by…
We apply marginal analysis \`a la Bulow and Roberts (1989) to characterize revenue-maximizing selling mechanisms for a multiproduct monopoly. We derive marginal revenue from price perturbations over arbitrary sets of bundles and show that…
We study staged entry with costly gatekeeping in a differentiated-products economy: entrepreneurs observe noisy signals before paying a resource-intensive activation cost. Precision improves selection but requires more resources, reducing…
Top trading cycles with fixed tie-breaking (TTC) has been suggested to deal with indifferences in object allocation problems. Unfortunately, under general indifferences, TTC is neither Pareto efficient nor group strategy-proof. Furthermore,…
Policymakers often face the decision of how to allocate resources across many different policies using noisy estimates of policy impacts. This paper develops a framework for optimal policy choices under statistical uncertainty. I consider a…
How a shock to an individual sector propagates to the prices of other sectors and aggregates to GDP depends on how easily sectoral goods can be substituted in production, which is determined by the intermediate input substitution…
This paper introduces a novel ranking of statistical experiments, the linear-Blackwell (LB) order, which can equivalently be characterized by (i) the dispersion of the induced posterior and likelihood ratios in the sense of the linear…
The asymptotic behavior of GMM estimators depends critically on whether the underlying moment condition model is correctly specified. Hong and Li (2023, Econometric Theory) showed that GMM estimators with nonsmooth (non-directionally…