arXiv preprints from January 1, 2026 through July 20, 2026 — 00:36:15 EST
In this paper, we develop an open-economy macroeconomic model of a Proof-of-Stake network to analyze nominal token-price dynamics and the systemic effects of speculative capital. We first consider a network populated solely by active utility users, who finance network activity through a steady exogenous inflow of fiat currency. We...
We propose one-step and two-step methods for policy learning with retrieval-augmented generation (RAG). We formulate RAG-based action selection under the potential outcome framework. In the two-step method, vector search retrieves action-specific neighboring evidence in an embedding space, the generator estimates conditional expected...
In random expected utility (Gul and Pesendorfer, 2006), the distribution of preferences is uniquely identified from random choice. This paper investigates whether such identification extends beyond expected utility. We first show that when risk preferences conform to the disappointment aversion model of Gul (1991), the distribution of...
How should people choose careers when artificial intelligence (AI) is rapidly transforming the nature of work? We first compare six recent projections of occupational exposure to task automation with AI, examining their methods and assumptions. We then propose a new empirical model of occupational AI exposure based on 2025 query data...
Research on Nash equilibrium existence for infinite games has grown into a patchwork of technical preconditions and counterexamples. This paper presents a unified program in equilibrium theory by revising the predominant model of mixed strategies based on countable additivity. A game is specified by a nonempty set of players and, for...
This paper examines how algorithmic and AI-driven fund management shapes the international transmission of U.S. monetary policy to emerging markets. It argues that the key source of instability is not algorithmic intermediation itself, but the similarity of models across funds. When algorithms rely on similar signals and make...
We introduce the mnorm package, which allows one to calculate conditional multivariate normal densities and probabilities and to differentiate them with respect to various parameters including covariances and integration limits. The package also supports parallel (multi-core) computing, handles non-normal marginals via the Gaussian...
This paper studies what happens when AI gets cheaper, with emphasis on the labor market outcomes, whether it creates formal jobs or whether it pushes workers into informality. We argue that the answer depends on the elasticity of substitution between imported AI capital and formal labor. We build a small open economy DSGE model with a...
The fraction of households living with insufficient liquid assets is important to understand consumption responses to income changes. Using harmonized data for 23 European countries over 2010--2023 from the Household Finance and Consumption Survey, we investigate the consumption responses to income changes of hand-to-mouth (HtM)...
Latent-variable models are central to economics but often entail intractable integration. Variational inference (VI), widely used in machine learning, turns this integration into tractable, differentiable optimization by replacing the likelihood with a variational objective. However, guarantees of recovering the true parameters remain...
This paper studies when high-resolution signals aggregated to administrative units can recover unobserved local economic activity. We develop a reverse-regression framework for signals generated by activity but used to predict it at coarser spatial supports. The main theorem decomposes predictive elasticity into elementary elasticity,...
Probably not, at least for meta-analyses in economics. In a pre-registered, identity-masked, within-paper experiment, the authors of 44 meta-analyses ranked three AI reports on their own paper by usefulness for improving it: a single pass by a frontier model against two multi-agent debate tools we built and expected to win. All...
Artificial intelligence (AI) is rapidly transforming economies, societies, and polities, raising fundamental questions about how it should be regulated. Policymakers face choices over whether to prioritize innovation or safety, rely on public oversight or private self-regulation, and govern nationally or internationally. Yet little is...
We develop a framework to compare the relative effectiveness of subsidizing alternative emission-reducing technologies. We show that an intermediate technology may reduce emissions more effectively than the cleanest technology if it induces sufficiently greater substitution away from the prevailing high-emission technology. We apply...
Experiments may, by design, prevent one from observing on a single subject both the response to a treatment and to its absence. Because of this, marginal distributions for both cases may be observable but not their joint distribution, thus obscuring the distribution of the treatment effect. We examine the case where we impose that the...
Forecasting is a central goal of time-series analysis. This review centers on three major developments in recent AI-based time-series forecasting: transformers, large pretrained models for zero-shot forecasting, and diffusion-based generative forecasters. We connect these methods to the econometric tradition built around the vector...
The paper investigates Bayesian Model Averaging and Selection (BMA/S) under non-standard stochastic assumptions, focusing on stochastic frontier analysis (SFA). We propose fast, reliable procedures for inference in the normal-exponential stochastic frontier model and examine whether accounting for asymmetric disturbances affects model...
We study the impact of external stimuli on attention in the Attentional Interference Model, capturing two opposing forces in consideration-set formation: proactive and retroactive interference. Proactive interference limits the permeation of external information, while retroactive interference displaces internally generated...
We propose a novel econometric methodology for Structural Vector Autoregressions with external instruments (`proxy-SVARs' or `SVAR-IVs') in panel data characterized by strong cross-sectional dependence, dynamic heterogeneity, and limited availability of direct external instruments for the shocks of interest. For each unit, we specify...
We develop a novel methodology for estimation and inference in high-dimensional panel network models with latent dual structures. The framework allows outcomes to be affected simultaneously by positive and negative interaction channels, accommodating settings in which some interactions reinforce outcomes while others generate...
This study introduces a novel framework to model cost overruns associated with four key stakeholders in nuclear power plant construction: equipment suppliers, construction subcontractors, the design and management team, and creditors. The framework estimates the share of overruns caused by each stakeholder and the share of overruns...
We study mixed bundling and competitive price-matching guarantees (PMGs) in a duopoly selling complementary products to heterogeneous customers. One retailer offers mixed bundling while the rival sells only a bundle. We characterize unique pure-strategy Nash equilibria across subgames and compare them to a no-bundling benchmark. Mixed...
We examine the new production function developed by Chilarescu, and prove that under certain restrictions, the values of the elasticity can also be less than one. We will also prove that under certain restrictions on the parameters, the production function satisfies the Inada conditions.
Generative AI is changing how software is produced and used. In vibe coding, an AI agent builds software by selecting and assembling open-source software (OSS), often without users directly reading documentation, reporting bugs, or otherwise engaging with maintainers. We study the equilibrium effects of vibe coding on the OSS...
We study optimal dynamic persuasion in a bandit experimentation model where a principal, unlike in standard settings, has a single-peaked preference over the agent's stopping time. This non-monotonic preference arises because maximizing the agent's effort is not always in the principal's best interest, as it may lead to a dead end....