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Robustness is often regarded as a critical future challenge for real-world applications, where stability is essential. However, as models often learn tasks in a similar order, we hypothesize that easier tasks will be easier regardless of…
Economic growth is often associated with diversification of economic activities. Making a product in a country is dependent on having, and acquiring, the capabilities needed to make the product, making the process path-dependent. We derive…
We use a formal correspondence between thermodynamics and inference, where the number of samples can be thought of as the inverse temperature, to study a quantity called ``learning capacity'' which is a measure of the effective…
We study the impact of learning on the optimal policy and the time-to-decision in an infinite-horizon Bayesian sequential decision model with two irreversible alternatives, exit and expansion. In our model, a firm undertakes a small-scale…
The authors hypothesised that export develops in the network of business collaborations that are embedded in migration status. In that, collaborative networking positively affects export performance and immigrant entrepreneurs enjoy higher…
Labor productivity in developed countries is analyzed and modeled. Modeling is based on our previous finding that the rate of labor force participation is a unique function of GDP per capita. Therefore, labor productivity is fully…
Currently, the increase in financial returns from economic operations is constrained in view of the lack of a single efficiency criterion, which allows uniquely identify the business operation by their main feature - the possibility of…
In international trade, firms face lengthy ordering-producing-delivery times and make shipping frequency decisions based on the per-shipment costs and financing costs. In this paper, I develop a model of importer-exporter procurement where…
Increasing the success rate of a process, i.e. the percentage of cases that end in a positive outcome, is a recurrent process improvement goal. At runtime, there are often certain actions (a.k.a. treatments) that workers may execute to lift…
In the first half of 2020, several countries have responded to the challenges posed by the Covid-19 pandemic by restricting their export of medical supplies. Such measures are meant to increase the domestic availability of critical goods,…
Experimental evidence confirms that AI tools raise worker productivity, but also that sustained use can erode the expertise on which those gains depend. We develop a dynamic model in which a decision-maker chooses AI usage intensity for a…
During the last decades two important contributions have reshaped our understanding of international trade. First, countries trade more with those with whom they share history, language, and culture, suggesting that trade is limited by…
Large language models (LLMs) with reasoning capabilities have fueled a compelling narrative that reasoning universally improves performance across language tasks. We test this claim through a comprehensive evaluation of 504 configurations…
Expression level is known to be a strong determinant of a protein's rate of evolution. But the converse can also be true: evolutionary dynamics can affect expression levels of proteins. Having implications in both directions fosters the…
Empirical evidence for the Heckscher-Ohlin model has been inconclusive. We test whether the predictions of the Heckscher-Ohlin Theorem with respect to labor and capital find support in value-added trade. Defining labor-capital intensities…
Reinforcement learning for large language models faces a fundamental trade-off between sample efficiency and asymptotic performance: strictly on-policy methods discard trajectories after a single update, while off-policy reuse introduces…
We develop a model for point processes on the real line, where the intensity can be locally unbounded without inducing an explosion. In contrast to an orderly point process, for which the probability of observing more than one event over a…
Product diversity, which is highly important in economic systems, has been highlighted by recent studies on international trade. We found an empirical pattern, designated as the "S-shaped curve", that models the relationship between…
As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…
Large Language Models have achieved remarkable performance on reasoning tasks, motivating research into how this ability evolves during training. Prior work has primarily analyzed this evolution via explicit generation outcomes, treating…