<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0" xmlns:itunes="http://www.itunes.com/dtds/podcast-1.0.dtd" xmlns:googleplay="http://www.google.com/schemas/play-podcasts/1.0"><channel><title><![CDATA[Frankly, the counterfactual was worse]]></title><description><![CDATA[News, research, and reflections from the policy analysis and public finance community at Indiana University's O'Neill School of Public and Environmental Affairs.]]></description><link>https://franklythecounterfactual.substack.com</link><image><url>https://substackcdn.com/image/fetch/$s_!Nif9!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Ffranklythecounterfactual.substack.com%2Fimg%2Fsubstack.png</url><title>Frankly, the counterfactual was worse</title><link>https://franklythecounterfactual.substack.com</link></image><generator>Substack</generator><lastBuildDate>Tue, 09 Jun 2026 18:16:15 GMT</lastBuildDate><atom:link href="https://franklythecounterfactual.substack.com/feed" rel="self" type="application/rss+xml"/><copyright><![CDATA[Coady Wing]]></copyright><language><![CDATA[en]]></language><webMaster><![CDATA[franklythecounterfactual@substack.com]]></webMaster><itunes:owner><itunes:email><![CDATA[franklythecounterfactual@substack.com]]></itunes:email><itunes:name><![CDATA[Coady Wing]]></itunes:name></itunes:owner><itunes:author><![CDATA[Coady Wing]]></itunes:author><googleplay:owner><![CDATA[franklythecounterfactual@substack.com]]></googleplay:owner><googleplay:email><![CDATA[franklythecounterfactual@substack.com]]></googleplay:email><googleplay:author><![CDATA[Coady Wing]]></googleplay:author><itunes:block><![CDATA[Yes]]></itunes:block><item><title><![CDATA[Practical Advice for Using AI in Health (& Other) Economics Research]]></title><description><![CDATA[Summary of NBER Panel from May 8th 2026]]></description><link>https://franklythecounterfactual.substack.com/p/practical-advice-for-using-ai-in</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/practical-advice-for-using-ai-in</guid><dc:creator><![CDATA[Kosali Simon]]></dc:creator><pubDate>Mon, 18 May 2026 19:26:44 GMT</pubDate><content:encoded><![CDATA[<p style="text-align: center;"><em>Boston, MA &#183; May 8, 2026</em></p><div class="captioned-image-container"><figure><a class="image-link image2" target="_blank" href="https://substackcdn.com/image/fetch/$s_!sg-k!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F210f022f-8bab-4c72-8e1b-ae6ee8983f1d_195x120.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" 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src="https://substackcdn.com/image/fetch/$s_!sg-k!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F210f022f-8bab-4c72-8e1b-ae6ee8983f1d_195x120.png" width="195" height="120" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/210f022f-8bab-4c72-8e1b-ae6ee8983f1d_195x120.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:120,&quot;width&quot;:195,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" 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fetchpriority="high"></picture><div></div></div></a></figure></div><div class="captioned-image-container"><figure><a class="image-link image2" target="_blank" href="https://substackcdn.com/image/fetch/$s_!VZel!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!VZel!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 424w, https://substackcdn.com/image/fetch/$s_!VZel!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 848w, https://substackcdn.com/image/fetch/$s_!VZel!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 1272w, https://substackcdn.com/image/fetch/$s_!VZel!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!VZel!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png" width="137" height="149" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:149,&quot;width&quot;:137,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!VZel!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 424w, https://substackcdn.com/image/fetch/$s_!VZel!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 848w, https://substackcdn.com/image/fetch/$s_!VZel!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 1272w, https://substackcdn.com/image/fetch/$s_!VZel!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe352919b-0220-4fad-9b7f-27a6b190b18d_137x149.png 1456w" sizes="100vw"></picture><div></div></div></a></figure></div><p style="text-align: center;"><strong>David Bradford</strong> &#183; <strong>Scott Cunningham</strong> &#183; <strong>Kosali Simon</strong> &#183; <strong>Coady Wing</strong></p><p style="text-align: center;"><em>University of Georgia &#183; Baylor &amp; Harvard &#183; Indiana University &amp; NBER (moderator) &#183; Indiana University</em></p><div class="embedded-post-wrap" data-attrs="{&quot;id&quot;:198516486,&quot;url&quot;:&quot;https://causalinf.substack.com/p/what-a-panel-of-economists-said-about&quot;,&quot;publication_id&quot;:306886,&quot;publication_name&quot;:&quot;Scott's Mixtape Substack&quot;,&quot;publication_logo_url&quot;:&quot;https://substackcdn.com/image/fetch/$s_!tCBR!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F515eb550-03a3-427c-ac1b-7cf640e822d0_1067x1067.png&quot;,&quot;title&quot;:&quot;What a panel of economists said about AI in the production of research &quot;,&quot;truncated_body_text&quot;:&quot;This is from a moderated discussion at the NBER Applications of AI in Healthcare meeting that happened in Cambridge, Massachusetts May 8th, 2026. 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Simon&quot;,&quot;photo_url&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/f0077749-65c8-4b3d-b9af-0b12178613b9_2933x2933.jpeg&quot;,&quot;bio&quot;:&quot;Faculty, IU O'Neill School. Health policy researcher using large-scale data. Writes from the perspective of someone who enjoys producing research, teaching, and building institutional research supports.&quot;,&quot;profile_set_up_at&quot;:&quot;2026-03-06T11:16:30.700Z&quot;,&quot;reader_installed_at&quot;:&quot;2026-05-06T15:36:06.871Z&quot;,&quot;is_guest&quot;:true,&quot;bestseller_tier&quot;:null,&quot;status&quot;:{&quot;bestsellerTier&quot;:null,&quot;subscriberTier&quot;:1,&quot;leaderboard&quot;:null,&quot;vip&quot;:false,&quot;badge&quot;:{&quot;type&quot;:&quot;subscriber&quot;,&quot;tier&quot;:1,&quot;accent_colors&quot;:null},&quot;paidPublicationIds&quot;:[306886],&quot;subscriber&quot;:null},&quot;primaryPublicationId&quot;:8586178,&quot;primaryPublicationName&quot;:&quot;Kosali's Substack&quot;,&quot;primaryPublicationUrl&quot;:&quot;https://kosalisimon.substack.com&quot;,&quot;primaryPublicationSubscribeUrl&quot;:&quot;https://kosalisimon.substack.com/subscribe?&quot;}],&quot;utm_campaign&quot;:null,&quot;belowTheFold&quot;:false,&quot;type&quot;:&quot;newsletter&quot;,&quot;language&quot;:&quot;en&quot;,&quot;source&quot;:null}" data-component-name="EmbeddedPostToDOM"><a class="embedded-post" native="true" href="https://causalinf.substack.com/p/what-a-panel-of-economists-said-about?utm_source=substack&amp;utm_campaign=post_embed&amp;utm_medium=web"><div class="embedded-post-header"><img class="embedded-post-publication-logo" src="https://substackcdn.com/image/fetch/$s_!tCBR!,w_56,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F515eb550-03a3-427c-ac1b-7cf640e822d0_1067x1067.png"><span class="embedded-post-publication-name">Scott's Mixtape Substack</span></div><div class="embedded-post-title-wrapper"><div class="embedded-post-title">What a panel of economists said about AI in the production of research </div></div><div class="embedded-post-body">This is from a moderated discussion at the NBER Applications of AI in Healthcare meeting that happened in Cambridge, Massachusetts May 8th, 2026. The panel consisted of Kosali Simon, Scott Cunningham, David Bradford, and Coady Wing. This is a writeup of the events&#8230;</div><div class="embedded-post-cta-wrapper"><span class="embedded-post-cta">Read more</span></div><div class="embedded-post-meta">19 days ago &#183; 25 likes &#183; scott cunningham and Kosali Simon</div></a></div><p><strong>Please see above for post coauthored by panelists and commentators.</strong></p><p><strong>ABOUT THIS PANEL</strong></p><p>Four economists discuss how AI is reshaping the production and verification of empirical research, with a focus on health economics: scale, peer review, training, and the data infrastructure that supports the field.</p><p><strong>WATCH &amp; READ</strong></p><p><strong>Conference page </strong><a href="https://www.nber.org/conferences/applications-artificial-intelligence-healthcare-spring-2026">nber.org/conferences</a></p><p><strong>Video archive </strong><a href="https://www.youtube.com/nbervideos">youtube.com/nbervideos</a></p><p><em>Panel session begins ~5h 54m into the multi-day stream.</em></p><p style="text-align: center;"><em>Transcript lightly edited for readability; substance and speaker phrasing preserved. Audience speakers are not individually identified.</em></p><h1>Executive Summary</h1><p>This panel at the NBER Applications of Artificial Intelligence in Healthcare conference convened four economists to discuss how AI is reshaping the production and verification of empirical research, particularly in health economics. The discussion was framed around the supply and demand of research itself: as AI tools dramatically lower the marginal cost of producing empirical manuscripts, what happens to peer review, journal capacity, training, and the data infrastructure that supports the field?</p><h3>Key themes</h3><p>&#8226; <strong>Production at scale is here. </strong>Scott Cunningham described AI agents that can autonomously produce submission-quality empirical manuscripts in roughly two to three hours, drawing on publicly available data, reproducible code, and standard identification strategies. The marginal cost has plummeted, even if it is not literally zero.</p><p>&#8226; <strong>Verification does not scale the same way. </strong>David Bradford, editor of Health Economics, warned that a 30 percent submission increase would crash existing peer review workflows, and a 50 percent or doubling increase would be catastrophic. Editors will likely need AI assistance simply to keep up.</p><p>&#8226; <strong>Quality and quantity can both rise. </strong>Coady Wing emphasized that iteration cost has fallen sharply, enabling cleaner replication packages, better-documented code, and more ambitious robustness checks. The same tools can be used to write more papers or to write better papers; incentives, not technology, will decide which.</p><p>&#8226; <strong>Restricted data is the binding constraint. </strong>Kosali Simon laid out the institutional infrastructure question: in a field that depends on restricted-access health data, where can AI tools sit relative to the secure environment? She outlined three approaches researchers are exploring (parallel workflows with synthetic data, local open-weight models, vendor-secured platforms with BAAs) and an audience member added a fourth (privacy-preserving synthetic versions of the underlying data).</p><p>&#8226; <strong>Hidden specification searching is a real risk. </strong>Reasoning-model logs reveal extensive specification searching that editors and referees cannot easily detect. Pre-registration and required replication packages at initial submission emerged as candidate safeguards.</p><p>&#8226; <strong>Incentives must change. </strong>Multiple participants returned to the point that as technical execution becomes cheap, the binding question shifts from &#8220;is this correct?&#8221; to &#8220;is this important?&#8221; Tenure standards that reward paper counts, and journal evaluation norms that reject on technical grounds rather than significance, will need to evolve. Health economics journal editors plan to meet at the ASHEcon annual meeting this summer to begin coordinating responses.</p><h3>Open questions raised but not resolved</h3><p>&#8226; How should journals signal and enforce policies on AI-assisted submissions, and can editor positions be harmonized across journals?</p><p>&#8226; Should AI-generated referee reports be paired with human reports, and would that be acceptable to authors?</p><p>&#8226; Should replication packages be required at initial submission rather than only on conditional acceptance?</p><p>&#8226; Can synthetic, privacy-preserving versions of restricted health datasets be made shareable enough to enable AI-assisted analysis without compromising data use agreements?</p><p>&#8226; As average AI usage costs rise, will smaller institutions be priced out of the frontier of empirical research?</p><p>&#8226; Should the field move away from a journal-as-stamp model toward direct evaluation by human experts?</p><h1>Cleaned Transcript</h1><p><em>The transcript below has been lightly edited for readability: filler words, false starts, and audio-transcription artifacts have been removed, and clear misrecognitions corrected. Substance and speaker phrasing are preserved. Audience speakers are not individually identified.</em></p><h2>Opening Remarks</h2><p><strong>Kosali Simon (moderator): </strong>Hello everybody. I&#8217;m Kosali Simon, and I&#8217;m delighted to be on this panel with my colleagues Scott Cunningham, Coady Wing, and David Bradford to talk about AI in the production of research. Thanks very much to the organizers and to the NBER for supporting this activity and for getting us together.</p><p>It&#8217;s been two days of really exciting research in AI and healthcare, and I&#8217;m going to switch the discussion over a bit to talking about the supply and demand of research in this area. While we&#8217;re talking about AI in healthcare, AI is also changing very dramatically how we do our research, and potentially how we publish it. We really have not had a summer of conferences to discuss all this. We know we are likely just at the start of the hockey stick, and it&#8217;s great to have this panel of colleagues who have been very actively thinking in this area share their thoughts and maybe read the tea leaves a little bit on where things are headed.</p><p>The panel will have brief opening remarks from each panelist just to get us started, because we really want to make this a discussion. All of us are actively engaged in this and have a lot to learn from each other. Scott will start by talking about the production and verification of the research process. David will then give the perspective of an editor. Coady will talk about AI in the research workflow. And then I&#8217;ll give some comments on university infrastructure and data agreement compliance, which is especially relevant for doing research in health. Without further ado, I&#8217;ll turn it over to Scott.</p><h2>Scott Cunningham &#8212; Production and Verification</h2><p><strong>Scott Cunningham: </strong>Thank you. Dr. Stein&#8217;s was a really good talk, and it made me think a lot about what I was going to talk about, which is that I think there&#8217;s an AlphaFold moment probably happening right now with these AI agents.</p><p>As an anecdote: at the University of Zurich, the Social Catalyst Lab has a program called AP &#8212; autonomous policy evaluation papers. What they&#8217;re doing is using AI agents to autonomously generate program evaluation papers. These are basically textbook difference-in-differences, RD, and IV style things. If all you know about large language models is ChatGPT, you might be thinking these are hallucinated papers. They are not. These are real, submissible manuscripts. When the agents write the paper, they come up with a research question, an identification strategy, they download publicly available data from the internet (of which there&#8217;s a near-infinite supply), put it on their local drives, arrange their folders, analyze it in scriptable, high-quality, replicable R code, run every conceivable robustness test, and then write a 20- to 25-page paper. They take about two to three hours to produce.</p><p>Where do they fall in the distribution of empirical papers written last year? They&#8217;re not in the left tail. They clearly have a distribution, roughly normal, and they reach far in both directions. Some of them are painful to read on the left, and some are weirdly high quality on the right. I have done this myself; I think a lot of people who have played with these agents have done it. You fire it up, write the vaguest of vague prompts, and you will be astonished without any human involvement at what you can get. With a little bit of effort you can get even more.</p><p>I&#8217;m not going to say the marginal cost of producing an empirical paper is zero, because last night I accidentally left a setting on Claude Code to automatically reload my budget and I spent $700 on an experiment. The marginal cost is not zero. There is some token cost. But we really don&#8217;t know who the producers of these papers will be, or where they&#8217;ll come from. What&#8217;s fair to say is that, if you can produce them at scale, the only thing that would keep you from doing it is some kind of restraint on the part of the researcher. It is not true that it cannot be done.</p><p>If you think about the O-ring analogy Dr. Stein put out there &#8212; that a Kremer-like O-ring production function takes all of these inputs to produce a manuscript &#8212; these agents have clearly shifted different parts of those inputs. A submissible manuscript is not the same thing as knowledge, and it is not the same thing as a publication. It&#8217;s now very clear that in economics there is a production side to the manuscript and a verification side. That was why I asked Dr. Stein the question I did &#8212; there might have been some bottleneck that has kept overall production from going up.</p><p>So the marginal cost has definitely plummeted, at least in time. You&#8217;re going to potentially see a gigantic &#8212; it&#8217;s impossible to know what the supply elasticities are with respect to this technology, but the returns to an empirical paper are very high. You can expand production. Verification, however, is still going to be human referees, still the same number of journal slots, unless those expand too.</p><p>A couple of points. First, a submissible manuscript can still be filled with problems. In one project I&#8217;m working on, when Claude Code runs a particular experiment, it produces a set of results, and you don&#8217;t really know where they came from &#8212; except that Claude Code is a reasoning model and is constantly recording all its choices in a JSON file. You can see exactly what it did prior to finishing, and it is filled with specification searching. Tons of it. Trying lots of things. And it is very sensitive to priming: telling it the project is on the minimum wage, and that a lot of studies find negative employment effects, appears to cause it to abandon specifications and search for others because they don&#8217;t fit with its priors. A submission-quality manuscript at scale doesn&#8217;t mean there isn&#8217;t a lot of stuff under the hood that will require detection and verification, and that won&#8217;t be immediately detectable to a referee or editor, and won&#8217;t appear in any pre-registration. It would be in JSON files that are easily edited or deleted.</p><p>On the verification side &#8212; and I&#8217;m not trying to be dystopian, I love AI &#8212; the question is: how many additional manuscripts have to show up on the editor&#8217;s desk for it to be difficult to handle? Does the volume have to go up 50 percent? Does it have to double? It would not be hard, if I were willing to spend $20,000 a year and had complete comfort with it, to have the world&#8217;s largest mass of working papers on my website. It would be trivially easy for me to swarm health economics with papers.</p><p>The lesson going on in structural biology with AlphaFold may be very relevant here. AI agents can autonomously generate empirical manuscripts, which forces us to step back and ask metaphysical questions about what exactly the goal is. If the goal is to produce scientifically accurate and innovative work, then AI being completely involved in the production side has to be the most credible conversation we have, because it&#8217;s very clear they can do high-quality work very fast. And yet that is going to create problems, because the production side can scale up and the verification side does not &#8212; unless you tap AI to do verification too, which is a whole other conversation.</p><h2>David Bradford &#8212; The Editor&#8217;s Perspective</h2><p><strong>Kosali Simon: </strong>Now a question for the editor.</p><p><strong>David Bradford: </strong>That might be my conversation. Thanks for laying out what&#8217;s possible and giving me a few ideas for how we move forward as journal editors. For those of you who&#8217;ve been paying attention to the work that&#8217;s been done by Scott and others around the world with AI since at least Opus 4.6 dropped in late February or early March, we&#8217;re now in a world where AI can autonomously do author-like activities, both on its own and in collaboration with humans.</p><p>This has important implications. One, humans can become more productive. Any of you who have tried and stuck with it have probably found yourself being more productive in your own research, because you&#8217;ve finally got &#8212; for me, after 30 years in the profession &#8212; an RA that&#8217;s actually helpful for me rather than the subsidy going the other direction. That&#8217;s great. But the downside is that machines can also generate work that provides a very good simulation of what a human would do.</p><p>This brings blessings and curses. Blessings: humans can use AI to generate better papers. I&#8217;ve actually explored these generative models on the theoretical side, and I&#8217;ll say that, in collaboration with a human, the frontier AI models are subtle and creative theorists as well as empirical researchers. I&#8217;ve had experiences where the AI helped me solve a problem, I didn&#8217;t understand it, I didn&#8217;t predict it, I sat down with a pad of paper and pencil, and four hours later I realized it was right in ways I would never have anticipated. The barriers to good work for humans have been lowered. The barrier of whether you are a great theoretician &#8212; whether you have eidetic memory to remember all the techniques &#8212; most of us don&#8217;t. That has been a barrier to advances in theoretical work, and it has fallen. The barrier to finding good data, knowing where it exists, has fallen. The barrier to implementing frontier econometric models has fallen. We will get better work out of people. That&#8217;s a good outcome. People may attempt papers they would otherwise never have attempted because of the intimidation of needing a theoretical component they don&#8217;t feel self-confident in, or not knowing where the data is. Ideas that existed but were never implemented can now move forward. And presumably, if we use these tools to proofread our work, we&#8217;ll get papers with fewer errors. Those are the blessings.</p><p>But there are curses too. The volume of good papers will increase. Speaking now as editor of Health Economics &#8212; the journal, not the Journal of Health Economics &#8212; the volume of good papers will increase. Currently, papers I desk-reject are typically not desk-rejected because they&#8217;re bad. Most commonly, they&#8217;re rejected because they&#8217;re not health economics &#8212; they&#8217;re health services research or clinical research or something else. It&#8217;s now a trivial matter for someone to feed their manuscript to an AI and say, &#8220;Make it look like a paper that fits everything published in health economics over the past ten years.&#8221; My personal screening &#8212; I reject half the papers I get &#8212; that&#8217;s going to be gone, because probably two-thirds of what I reject just doesn&#8217;t fit. Now anybody can make it fit with a little bit of work. That&#8217;s a curse.</p><p>Good papers coming to me is a blessing, but I have to pass them through peer review. To your question about how much of an increase we could absorb: I think not much, honestly. For my particular journal, we get 1,300 submissions a year. I have to look at every single one and decide whether to desk-reject or pass through. A 30 percent increase of not-obviously-desk-rejectable manuscripts would crash our system. We currently have to invite seven, eight, or nine referees to get two to say yes. If the volume goes up, that becomes untenable for me at Health Economics, for you at Restat, for all of us involved in editorial work. Good submissions from humans and good submissions from machines &#8212; and detecting the differences &#8212; will be problematic.</p><p>There&#8217;s a nascent movement in the health economics sphere. We&#8217;re going to have a meeting this summer at the American Society of Health Economists annual meeting where eight journal editors are going to get together to see if we can harmonize our positions on how to encourage and react to AI-assisted submissions. We need to do this for several reasons. One, we have to give authors clarity. If you submit to Health Affairs, you have to put your footnotes in Vancouver style or they won&#8217;t send it out &#8212; that&#8217;s irritating, but you can handle it. But if you&#8217;ve used AI to write your paper and you send it to a journal with a zero-tolerance AI policy, you can&#8217;t unring that bell. We need this information available easily. Harmonizing our positions will help. But we also have to confront the real prospect that the volume of papers needing serious editorial eyes could increase substantially within the next 12 months. A 30 percent increase would be substantial. A 50 percent increase or a doubling is not impossible, and that would be catastrophic. At that point we have to think about whether, in this arms race, editors have to take advantage of AI as well as the authors do. You say humans have to look at everything; I&#8217;m not sure humans are going to be able to, honestly.</p><p>Part of what I&#8217;m excited about is hearing your perspectives, because we&#8217;re going to have this meeting and I want to take feedback to it. Where would you like AI to slot in &#8212; not only in how you work, which means we need to take that on board with our submission requirements, but in how we work? Are you willing to have a human and an AI collaborate in the review process? Is that credible? If the answer is no, we need to know it, because whether we like it or not we may be pushed in that direction.</p><p><strong>Kosali Simon: </strong>When we get to Q&amp;A, I think we&#8217;re going to make good progress here.</p><h2>Coady Wing &#8212; AI in the Research Workflow</h2><p><strong>Coady Wing: </strong>A lot of what I want to say overlaps with what David covered. My sense is that this room is very different from the other venues I&#8217;ve had these conversations in. I have a feeling people here are heavy users of some of these tools, maybe as much as me. But if you haven&#8217;t been paying attention, Substack and Twitter &#8212; even though Twitter can be a little toxic &#8212; are amazing places to learn what people are doing and how their personal workflows look. There is quite an idiosyncratic range of ways people operate with these things.</p><p>There&#8217;s a lot of talk, maybe too much, about one-shot papers. I agree the autonomously-created-papers project is fascinating to look at, but for me, although it&#8217;s curious to see the brief prompt and what comes out, one-shot papers haven&#8217;t been all that interesting. In my own work that hasn&#8217;t been a very effective way to use Claude Code or Codex or anything like that. What I have been excited about is that they seem to allow me to do the things I normally do, broadly construed, at much higher quality and much faster &#8212; and often faster in a way that improves quality, because there&#8217;s just a lot more iteration.</p><p>Instead of iterating myself, then having to go teach or do another activity, or working with a research assistant who runs some regressions, makes a graph, and shows them to me, then we want changes and several months go by before we&#8217;re done &#8212; that can now be an hour and a half in my office, by myself, where we iterate until the graph looks exactly the way I want it to. That kind of work is produced in a much cleaner and more efficient way when you&#8217;re doing it with an agentic AI tool. You end up with a nice tidy script that produces the graph you wanted or cleans up the data the way you wanted. It&#8217;s much better documented. Rather than, at the end of your project &#8212; if you&#8217;ve been a bit sloppy along the way &#8212; having to go back and build the replication package, the replication package is basically always up to date. That kind of thing is fantastic news.</p><p>The one-shot version &#8212; the more you automate, the less sure I am how ultimately useful it is. It depends on whether, when you read the paper at the end, you feel you know exactly how it worked the way you did when you wrote your own paper. You learn a lot writing a paper. You know pretty well how you collapsed the data, whether you took the mean or the median at various steps. When you read an autonomously produced paper, you have none of that. It may have made judgments far from the ones you would have made. It&#8217;s more like reading a paper written by someone else, which is fine, but it&#8217;s a different experience. I&#8217;m not sure what the demand will be for papers that didn&#8217;t at least pass through the mind of a human author. What do we do with thousands of papers autonomously produced where no one has really had a look at them? It might be a tree falling in the woods with no one to hear it.</p><p>If that point of view is closer to what you&#8217;re doing, you should think about what to do differently other than write more papers faster. In some cases it may let you take on more projects. In others, it may let you do higher-quality or more ambitious work. Probably it shifts your standards for what constitutes competent or well-executed research. Supposing we survive the journal apocalypse and the deluge of papers, consumers of empirical economics will probably have much higher standards for shareable code bases, well-organized and well-documented code that isn&#8217;t hard to figure out &#8212; where&#8217;s the key regression, how do I find this result? It may increase the value we place on public-use or publicly shareable data, which I think is a major problem in health economics. A lot of the most exciting work in health economics these days uses restricted-use data. Not only do you not get to see the code &#8212; you can sometimes piece things together from a long appendix &#8212; but you have no hope of accessing the data. I wonder if that becomes a less acceptable norm, because you&#8217;ll want to wade into the data. If you can have shareable data, you can read the paper, look at the code, understand it better, clone the repo, and have your client go through it. Your efficiency as a consumer of that research improves dramatically. That might be partly the solution to the problem journals will face, because the productivity of reviewers and editors, and the time people have to do these activities, may change because of the tools.</p><h2>Kosali Simon &#8212; University Infrastructure and Data Agreements</h2><p><strong>Kosali Simon: </strong>I&#8217;m going to pick up on the theme of how often, in health research and many other types of research, we&#8217;re using restricted-access data, and think about university infrastructure and data-agreement compliance in light of how we&#8217;re changing the technology of how we produce research.</p><p>There are about three options I see people exploring.</p><p>First: treat the environment where the data live as a secure environment into which no AI tools will be introduced, and do the coding on the outside. The data stay inside; you do parallel play. You think about how to code a procedure with just variables X and Y outside, learn from that, and then either have a screen somewhere or import the code into the secure environment to work with the real data. There are various iterations of this. With synthetic datasets now being created, you can do quite a lot of the coding outside and then bring well-executed steps into the secure environment.</p><p>Second: take open-weight models, close them off so no outbound calls are made, and set them up inside your on-premise secure environment. Then develop everything within that environment. Especially with the quality improvements in open-weight models, this has become a very plausible option. University infrastructure or research organization infrastructure becomes very important here, because what you can do depends on the strength of the compute &#8212; how many GPUs you have, what your GPU capacity is to run these models locally.</p><p>Third: consider agreements with vendors. Secure vendor-based on-prem environments where your data provider and the platform vendor have come to an agreement. There can be a Business Associate Agreement written for secure data that is HIPAA-compliant. When people use health data subject to HIPAA, they have to make sure that if they&#8217;re using a third party to process it, they have a BAA stating compliance. You can do that, or you can make sure your data has been stripped of the identifiers that make it covered. But in order for us to remove date precision (less than a year) and state geography, many of our study designs &#8212; which are often around time and place &#8212; break. You have expert-determined de-identified data; that&#8217;s a possibility, but you lose tools. These vendor-cloud options are fairly expensive.</p><p>Thinking about what other resources we need, what infrastructure our professional homes &#8212; research organizations or universities &#8212; provide that makes all of this possible, is something for us to consider.</p><p>I&#8217;d love to open up to questions or reactions. We&#8217;re all in this together and you may have experiences to share.</p><h2>Discussion and Q&amp;A</h2><h3>On the verification process and the gap between mechanics and ideas</h3><p><strong>Audience member: </strong>Thank you &#8212; this is a great panel. I&#8217;ve been playing with agents while writing my lecture slides, and my experience has been that, for teaching and research, there&#8217;s the core voice you develop &#8212; what is important, what is insightful, what could be worth studying &#8212; and then there are the mechanics: creating the figure, writing the code, checking the code, maintaining the repo, and the appearance &#8212; making it look like journal-quality, the citations. My impression is that AI is particularly good at the mechanics. That&#8217;s good news for research: more replicable, faster iteration, more robustness checks. But it&#8217;s not at human-level ideation about what&#8217;s a great idea &#8212; maybe we&#8217;ll get there with the thousand-paper project. The challenge for review is that we&#8217;re going to be flooded with things that have great mechanics and look nice, but the ideas may not be drawn from the human-level distribution we had before. How do we adjust the verification process to find the good ideas in that big stack? I&#8217;m not thinking about one-shot papers, but that everyone is going to use these tools. It&#8217;s an empirical question whether our ideas are still great ideas. AI is also great in my work for checking code and checking compliance &#8212; whether what you describe in the text actually matches the code. There are simple measures we should take. Because it&#8217;s now so easy, we should require &#8212; like the data editor&#8217;s replication package requirements &#8212; that the package come with the original submission, not only at conditional acceptance, so referees can look at your code and play with it in ways that were too costly before.</p><p><strong>David Bradford: </strong>I agree with everything you just said, and I&#8217;ve also been thinking this is an opportunity to get replication packages in the initial submission. Within a very short period of time people can have enough facility with these models that they can do that, and that will help us with accuracy. Maybe they even have to submit the JSON &#8212; I hadn&#8217;t known about that until Scott said it a few minutes ago. This may also be an opportunity for us to do a better job of refereeing than we have in the past. Personally, when I read a paper I&#8217;m refereeing &#8212; if I don&#8217;t think the paper is that interesting, I struggle to reject it just because it&#8217;s not that interesting. I&#8217;m always trying to find a technical flaw as the basis for rejection. As we move into an era where technical flaws become much harder to find, we may have to do more of what we probably always should have done a better job of, which is asking the hard question: is this really important? Is this really interesting? And not be embarrassed to say no on that basis. I hope we come out of this stronger.</p><h3>On the infancy of the technology and shifts in what we value</h3><p><strong>Audience member: </strong>A couple of comments. One, it sounds like we&#8217;re thinking about the impact of a technology still in its infancy &#8212; or at least when I think about it, it&#8217;s like aliens came and all they saw was babies, so the species seems to die all the time. If they came back 30 years later they&#8217;d find something different. Maybe in two years everything is completely different. My other thought: if anything solves the brain puzzles of personal behavior &#8212; whether found by humans or machines &#8212; we avoid recessions, we solve poverty, we make sure people stick to their medications, we cure things; a lot of big questions get answered. A lot of papers right now just give us a signal. So a possible scenario is that we&#8217;ll move toward questions that are more verifiable, instead of doing the gazillionth diff-in-diff. Maybe what we value will change in ways hard to think about now, on top of the constraint that we&#8217;ll have a billion papers and need a way to figure out which are worth keeping an eye on.</p><p><strong>Audience member: </strong>My thought is that we are already the experts. I use AI very little compared to many people here, but when I do, it&#8217;s relatively easy for me to separate the rubbish from what isn&#8217;t. I&#8217;m worried about students. They&#8217;re going to use these tools whether we like it or not. How will they discriminate, and how will we train them? In our university, we have a big bottleneck where we really see whether a student has the potential to become an active researcher and not just a repeater of other people&#8217;s knowledge &#8212; the second-year paper. How are we going to train our students now, given that they can do everything but don&#8217;t really understand it?</p><h3>A fourth approach to data: privacy-preserving synthetic versions</h3><p><strong>Audience member: </strong>Thanks to all the panelists and to Kosali and Kevin for putting this on the program. There are fundamental issues here and the profession will be wrestling with them for a while. I&#8217;ll respond to one of Kosali&#8217;s points: the three options for working with data all take the data as a given. The data lives in a walled garden and the AI is outside; or you work with a crummier AI inside the garden; or you contract for an AI-enabled environment where data live. The fourth possibility is that the data are modified so the researcher can work with them in an AI-enabled environment. Think of the parallel &#8212; not a complete one &#8212; to the work around privacy-protected census data, which was pre-AI but post-big-data and post-high-power-computing. Even then it was shown that you could essentially reverse-engineer who was who in the census in some small cases if you had enough external information and compute. One solution that&#8217;s been pulled forward is creating a synthetic dataset by fuzzing up the raw data and making the fuzzed-up data available to researchers. It&#8217;s a battleground &#8212; the question is how well the fuzzed-up data reproduces results from the original. AI tools may enable us to do that better. The question for health economics is: what if CMS datasets no longer had the actual records, but rather a 20 percent sample with privacy-protected, differential-privacy-approved modifications?</p><p><strong>Kosali Simon: </strong>Absolutely. There&#8217;s going to be a lot of power in thinking about how we approached missing data and multiple imputation, applied to building fully synthetic data for privacy preservation and differential privacy. I think we&#8217;ll be able to train synthetic data that look really realistic. Then there will be questions about whether that data &#8212; because it&#8217;s training on results that are already disclosed &#8212; has differential privacy implications even though we never actually touch the raw data, because table one and table two have already been released. That&#8217;s definitely a fourth possibility.</p><p><strong>Audience member: </strong>There&#8217;s actually a hybrid fourth: building on the replication package, you submit your replication package with the synthetic data, the agency runs it on the actual data and sends you back the actual tables. You never touch the actual data but you get results from it.</p><p><strong>Kosali Simon: </strong>Yes &#8212; lowering those barriers. We&#8217;ve got now very skilled coders, and AI to help us achieve that. In a real sense the AI tool is some synthetic data, and then you send it to the data. A very interesting possibility.</p><h3>More papers or better papers?</h3><p><strong>Audience member: </strong>It seems that in principle AI could be used to write better papers or more papers. It doesn&#8217;t have to be that we just write more, but we all seem very concerned about the paper deluge. Rather than spending what would have been a very long time on a paper, more is now feasible and so we&#8217;ll just write more papers. There&#8217;s interesting work by Marco that talks about how, in the evaluation process, maybe more is always better because you get more draws. But I was wondering: what are the forces pushing toward more papers rather than better papers, and is there anything we can do to push the other way &#8212; to use AI to do things that are harder or more ambitious than what we were doing before, not just write more?</p><p><strong>Coady Wing: </strong>Great question. I think we&#8217;ll probably see a shift in quality too, because it&#8217;s easier to take on hard things. One possibility is the extra robustness checks you do. The stereotype of an economics working paper is that it&#8217;s 98 pages long and only the first four are interesting. Maybe that&#8217;s the limiting principle &#8212; what&#8217;s the point of these extra things? But certainly the cost of doing them has fallen, and it&#8217;s possible that the high-value extra robustness check &#8212; the one that isn&#8217;t padding the appendix but is really salient, the one you weren&#8217;t doing before because it was so hard or expensive or time-consuming &#8212; is now much cheaper. So we might see a big quality change. The flood has not actually happened yet. It&#8217;s possible we&#8217;re all out there improving quality and not producing lots of quantity, except in isolated cases when people decide to work on it over the weekend. It&#8217;s unclear what will happen.</p><p><strong>David Bradford: </strong>There are paper mills that do attempt to flood us. They&#8217;re somewhat detectable at this point, and they&#8217;ll make it harder to detect. But why will it go quantity over quality? Ultimately, as economists we&#8217;d all agree, it boils down to incentives, largely the tenure-track incentives the departments researchers sit in require. If we could move away from a model that just counts &#8212; I can&#8217;t tell you how many departments I&#8217;ve been associated with where people had the impulse to create tenure rules that could be implemented by the departmental administrative assistant: &#8220;Okay, we check boxes here, why do I have to turn on my brain?&#8221; If we moved away from &#8220;you need three top fives and you need six others&#8221; toward models where the external letters were more important &#8212; &#8220;this person really contributes&#8221; &#8212; then maybe we could short-circuit this. But it&#8217;s going to require collective action, uncoordinated, people taking good-faith steps. One hopes &#8212; but hope&#8217;s not a great strategy.</p><h3>Submission volume: the ChatGPT effect is already visible</h3><p><strong>Audience member: </strong>A question from the machine-learning perspective: we have observed exponential growth in submissions, almost 30,000 [unclear].</p><p><strong>Scott Cunningham: </strong>That&#8217;s a ChatGPT effect, not an agent effect. There was a paper that just came out in Organization Science &#8212; submissions up 42 percent since ChatGPT, writing quality declining, AI-generated text accounts for nearly all of both trends. And that&#8217;s not agents; that&#8217;s just ChatGPT and copy-paste. Who knows &#8212; maybe writing quality will go up. The economies-of-scale effects as you go up could go in any direction. You can have increased quality at some margins, but then you bring in, at the extensive margin, people who have not been research-active. One of the bottlenecks worth noting is that some people are on 2-3 or 3-3 teaching loads &#8212; they can&#8217;t do much research &#8212; but now they really can. So there will be new researchers at the extensive margin who have all this potential. They have papers they want to write, and they&#8217;ve been quote-unquote underplaced or just in a place where they couldn&#8217;t publish very well.</p><h3>Could LLMs do a first-pass review?</h3><p><strong>Audience member: </strong>Are LLMs good enough right now to do some preliminary editing &#8212; or as an additional first pass at refereeing?</p><p><strong>David Bradford: </strong>My impression right now &#8212; and I&#8217;ll speak to frontier ChatGPT and frontier Claude, the two I know best, with a bit of Gemini &#8212; is that they are quite good at finding technical mistakes. So if I fast-forward in my mind a year, and if the flood we&#8217;re afraid of &#8212; which hasn&#8217;t started yet &#8212; really takes off, that&#8217;s how I would see humans and AI collaborating on editing: a human referee who asks &#8220;is this important?&#8221;, who has the taste, who has the perspective on the field, plus a large language model that finds technical mistakes. The editor then decides which are important and which aren&#8217;t. That&#8217;s a possible pathway that would cut our need for referees in half, which would be nice. I&#8217;ve heard no other editors say they want to do this, but it&#8217;s within the skill set of Claude and ChatGPT and to some degree Gemini today.</p><p>We&#8217;re actually undertaking an experiment &#8212; I can say this. I&#8217;m designing it right now with our editors at Health Economics where they&#8217;ll get old papers and one human referee report; some will get two human referee reports, and some will get one report from a human and one from an AI, just to see whether their decisions would be different. We may find papers with flaws that we published and didn&#8217;t realize. We&#8217;re trying.</p><h3>Specification searching and guarding against it</h3><p><strong>Audience member: </strong>On the production side and the verification side: the volume and quality of frontier research will go up, but journals are deciding who gets to take the benefit. The thing that worried me most about Scott&#8217;s description was the specification-search aspect &#8212; how cheap it becomes to search for a specification that confirms whatever I want to do, and the difficulty of verifying that. The big challenge is how to guard against that. One thing that comes to mind is a more quantified set of practices on which methods and specifications are permissible. We could be more specific about which estimators are admissible versus not, and it&#8217;s relatively straightforward to codify and check that when you ask the author for code. We haven&#8217;t done that for a long time. Econometrics pretends the specification was decided first and then we do the hypothesis test, but I feel it&#8217;s imperative we do that and enforce it. Perhaps there&#8217;s another researcher with access to the same data who is asked to run the modified code and check it to make sure things are right.</p><h3>Alternative publishing models</h3><p><strong>Audience member: </strong>Many of these conversations seem to focus on the publishing model we have and figuring out what we&#8217;ll do when the floodgates open. Have there been conversations in the background about alternative models we could be using? On one hand we don&#8217;t have a million wrong papers all p-hacking; on the other, there might be marginal knowledge that is very valuable &#8212; replication of papers, things hard to publish but now much easier to do. Are you thinking about expanding journal types &#8212; different kinds of journals for different kinds of work?</p><p><strong>David Bradford: </strong>For quite some time, we have long passed the point where, for almost all journals, journal space is a meaningful constraint. Most journals are now almost entirely digital, and the major for-profit publishers &#8212; I mean Elsevier and Wiley &#8212; resist strongly the idea that they actually publish an issue anymore. We could have 100 papers in an issue. There&#8217;s no particular barrier to that. But at some juncture you get AI writing papers and AI reading the papers because nobody can keep up.</p><p>In terms of alternative models, it does feel like a moment to take a breath and contemplate such things. But there are powerful economic forces invested in the status quo &#8212; I mean Elsevier and Wiley and other multinational corporations who would be loathe to give up power, and they ultimately control the journals. I don&#8217;t know how you get Wiley to do something radically different. I don&#8217;t know that they yet appreciate the existential threat they&#8217;re facing. When I&#8217;ve talked to people who oversee health economics at Wiley about the upcoming meeting, I&#8217;ve been shocked when they say they hadn&#8217;t really thought about having these conversations yet. If I were running a million-dollar-a-year company and this was my only value proposition, I would have been paying a lot of attention to it. But they&#8217;re not.</p><h3>Attribution, labeling, and the role of the publication stamp</h3><p><strong>Audience member: </strong>I wanted to add a comment. One of the main issues about academic publishing &#8212; you mentioned that AI can help pick up mistakes and authors can use that to avoid submitting something flawed. But one of the main issues is attribution. Wiley doesn&#8217;t have an incentive to change this. The larger problem we have to think about in this evolution is that there will be others using AI and publishing the best papers without even understanding them. When I think about how Hicks and others could publish a paper, put it somewhere, mail it to top people and just get feedback on it &#8212; right now, publication has become a kind of labeling. Why do you publish in the top JEP? Because you want to have a stamp. Maybe we should change that. We should think more about feedback coming from human experts, not from publishing in traditional journals. Beyond getting the stamp, what is publication? If that stamping is removed, you wouldn&#8217;t have to worry as much about some of these problems of attribution.</p><h3>Pricing, access, and the future of smaller institutions</h3><p><strong>Audience member: </strong>I have a question about pricing. Right now the speed of tokens &#8212; for an institution that is currently footing the bill, that&#8217;s not going to last forever. Hopefully average cost goes down, but as we think about which universities are going to win here, it&#8217;s the smaller ones that don&#8217;t get the subsidy who lose. That&#8217;s how I always think it comes down. How do you think about that?</p><p><strong>Kosali Simon: </strong>That&#8217;s a really good point for us to think further on. We&#8217;ve already talked about how the tools may bring more voices in because they lower the entry barrier. On the other hand, we&#8217;ve talked about how much this will involve expensive amounts of technology, given what the top frontier models look like. This is something for institutions to grapple with &#8212; and whoever funds the science process has to think about it. As was said, we&#8217;re really at the baby stage of each of these conversations. This is just the start. It will be interesting to see where we are in six months or a year when we come back.</p><p><strong>Kosali Simon: </strong>Thank you to the panelists.</p>]]></content:encoded></item><item><title><![CDATA[AI in Economics: April 2026 Edition]]></title><description><![CDATA[Which occupations are using AI in 2026? Read on! But before I start, a note for readers who want to tune in this week: There is a NBER AI in Healthcare workshop Thursday and Friday, May 7-8 here. I am moderating the closing panel on Friday which is titled &#8220;Practical Advice for Using AI in Health Economics Research,&#8221; with David Bradford (University of Georgia), Scott Cunningham (Baylor and Harvard), and Coady Wing (Indiana University). Please send us your questions. More on the panel at the bottom of this post.]]></description><link>https://franklythecounterfactual.substack.com/p/ai-in-economics-april-2026-edition</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/ai-in-economics-april-2026-edition</guid><dc:creator><![CDATA[Kosali Simon]]></dc:creator><pubDate>Wed, 06 May 2026 15:19:58 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!QAvC!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png" length="0" type="image/jpeg"/><content:encoded><![CDATA[<p>Before I start, a note for readers who want to tune in this week: There is a NBER AI in Healthcare workshop Thursday and Friday, May 7-8 <a href="https://www.nber.org/conferences/applications-artificial-intelligence-healthcare-spring-2026">here</a>. I am moderating the closing panel on Friday which is titled &#8220;Practical Advice for Using AI in Health Economics Research,&#8221; with David Bradford (University of Georgia), Scott Cunningham (Baylor and Harvard), and Coady Wing (Indiana University). Please send us your questions. More on the panel at the bottom of this post.</p><p>Now to the April research roundup. A strong month across all three of the themes this Substack tracks: AI&#8217;s impact on the economy, AI as a research tool, and AI in decision-making. New readers can find background on these themes, and on the sources I draw from, in the launch post.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://franklythecounterfactual.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Frankly, the counterfactual was worse! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><h2>Week ending April 6</h2><p>Following the &#8220;knowledge collapse&#8221; paper from March, Acemoglu, Lin, Ozdaglar, and Siderius (&#8221;<a href="https://www.nber.org/papers/w35036">How AI Aggregation Affects Knowledge</a>&#8220;) study a feedback loop: an AI gives answers to lots of people, those people then go on to generate new data, through writing, posting, asking follow-up questions, that has been influenced by the AI&#8217;s earlier answers, and the AI retrains on that data. They show that when one big AI tries to handle too many different topics and communities at once, it gets confused: its answers blur inputs from unrelated contexts together, and as it keeps retraining on a world it has already influenced, small errors compound over time. The fix is to use many smaller AIs, each focused on a specific topic or community, so that answers stay grounded in information that&#8217;s actually relevant. A practical lesson: keep your own chats separate and focused, too!</p><p>Fang, Gu, Yan, and Zhu (&#8221;<a href="https://www.nber.org/papers/w35022">AI Patents in the United States and China: Measurement, Organization, and Knowledge Flows</a>&#8220;) build a tool that can spot which patents are really about AI, and use it to compare US patents from 1976 to 2023 against Chinese patents from 2010 to 2023. The two countries are filing AI patents at roughly similar rates relative to their overall patenting, even though China now files more in absolute numbers each year. But who is doing the patenting looks very different: in the US, a handful of big private companies dominate, while in China the activity is spread across many regions, with universities and state-owned enterprises playing a much bigger role. And despite political pressure on both sides to separate the two countries&#8217; technology systems, the patent citation data show that American and Chinese AI inventors are still building on each other&#8217;s work.</p><p>Handel et al. (&#8221;<a href="https://www.nber.org/papers/w35034">Thinking versus Doing: Cognitive Capacity, Decision Making and Medical Diagnosis</a>&#8220;) use detailed electronic medical record data to look at what happens when emergency department physicians get busier. As cognitive load goes up, doctors do less careful thinking and order more tests, but the tests they order are less targeted to what is actually wrong with the patient.</p><p><em>Panel A from Handel et al. (2026), &#8220;<a href="https://www.nber.org/papers/w35034">Thinking versus Doing</a>,&#8221; NBER Working Paper 35034. Average cognitive load at each shift hour for the 20 providers with the most shifts who are in year 3 or later of their residency. The blue dot is the mean; the yellow dots are the 25th and 75th percentiles across shifts. Cognitive load builds up over the course of an emergency department shift, plateauing in the middle hours and rising sharply in the final hours. Used with attribution.</em></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!ZLCR!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!ZLCR!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 424w, https://substackcdn.com/image/fetch/$s_!ZLCR!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 848w, https://substackcdn.com/image/fetch/$s_!ZLCR!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 1272w, https://substackcdn.com/image/fetch/$s_!ZLCR!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!ZLCR!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png" width="1324" height="672" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:672,&quot;width&quot;:1324,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;Average Cognitive Load Trajectory of Top 20 Residents&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="Average Cognitive Load Trajectory of Top 20 Residents" title="Average Cognitive Load Trajectory of Top 20 Residents" srcset="https://substackcdn.com/image/fetch/$s_!ZLCR!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 424w, https://substackcdn.com/image/fetch/$s_!ZLCR!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 848w, https://substackcdn.com/image/fetch/$s_!ZLCR!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 1272w, https://substackcdn.com/image/fetch/$s_!ZLCR!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F45dd55a9-a704-477f-86fc-b273cbd082a7_1324x672.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>The finding sharpens the case for where AI clinical decision support could add the most value, and connects to earlier work I covered on the gap between AI enthusiasm and actual diagnostic improvement (see the launch post on Abaluck et al.). Jon Kolstad will also be presenting &#8220;Learning from Clinical Decisions: The Economics of Healthcare AI&#8221; at the NBER meeting on Thursday afternoon.</p><h2>Week ending April 13</h2><p>Waugh (&#8221;<a href="https://www.nber.org/papers/w35053">Trade in AI-Related Products</a>&#8220;) uses a large language model (Claude, as it happens) to read through US trade data and figure out which imported products are used to build and run AI infrastructure (chips, servers, networking equipment, electrical and cooling components). He finds that these AI-related products made up 23 percent of all US imports in 2025, with imports of these goods growing 73 percent since 2023, while imports of everything else grew just 3 percent. The divergence began in early 2024 and has accelerated sharply.</p><p><em>Figure 1 from Waugh (2026), &#8220;<a href="https://www.nber.org/papers/w35053">Trade in AI-Related Products</a>,&#8221; NBER Working Paper 35053. Used with attribution.</em></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!AP9J!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!AP9J!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 424w, https://substackcdn.com/image/fetch/$s_!AP9J!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 848w, https://substackcdn.com/image/fetch/$s_!AP9J!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 1272w, https://substackcdn.com/image/fetch/$s_!AP9J!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!AP9J!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png" width="1394" height="902" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/a479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:902,&quot;width&quot;:1394,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;U.S. Imports of AI-Related Products vs Non-AI Products, 2022 to 2026&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="U.S. Imports of AI-Related Products vs Non-AI Products, 2022 to 2026" title="U.S. Imports of AI-Related Products vs Non-AI Products, 2022 to 2026" srcset="https://substackcdn.com/image/fetch/$s_!AP9J!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 424w, https://substackcdn.com/image/fetch/$s_!AP9J!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 848w, https://substackcdn.com/image/fetch/$s_!AP9J!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 1272w, https://substackcdn.com/image/fetch/$s_!AP9J!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa479ca92-66a7-454c-80a4-4dea054f9f6f_1394x902.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>About half of US trade in AI-related products goes through Mexico and Taiwan, with Mexico&#8217;s role surprisingly broad across categories (not just chips). Without the AI boom, the US trade deficit in 2025 would have been nearly $200 billion smaller. A nice touch, increasingly common in working papers: Waugh shares his code and supplementary materials in a <a href="https://github.com/tradewartracker/ai-trade-index">public GitHub repository</a>, so other researchers can verify and build on the work right from the dissemination stage rather than waiting until publication. Of course this only works once a paper is far enough along that the author isn&#8217;t worried about getting scooped.</p><p>Karger et al. (&#8221;<a href="https://www.nber.org/papers/w35046">Forecasting the Economic Effects of AI</a>&#8220;) survey five groups (academic economists, AI company employees, AI policy researchers, expert forecasters with strong track records, and the general public) on how they expect AI to reshape the US economy. The typical respondent in each group expects annual GDP growth of 2.5 percent, faster than standard forecasts. Under a rapid AI progress scenario, experts predict GDP growth rises to around 4 percent and the share of adults working falls from 62 to 55 percent by 2050, with about half the drop caused by AI. Most expert disagreement is not about how fast AI will advance, but about what the economic effects of highly capable AI will actually be.</p><h2>Week ending April 20</h2><p>Davis, Bloom, and Codreanu (&#8221;<a href="https://www.nber.org/papers/w35083">Demand-Driven Technical Change: Evidence from WFH Technologies</a>&#8220;) examine 5.6 million US patent applications from 2010 to 2026 and document that the share advancing technologies in support of work-from-home rose by about two-thirds within three years after the pandemic and remains about 50 percent above pre-pandemic levels five years later. The lasting rise concentrates in telecommunications, especially video conferencing, speech recognition, and audio processing; these are technology areas, but heavily AI-driven, since modern speech recognition, real-time transcription, noise suppression, and meeting summaries all rely on machine learning. The paper is a clean piece of evidence that a sudden, lasting demand shock can redirect innovation, including AI-adjacent innovation.</p><p>Muller (&#8221;<a href="https://www.nber.org/papers/w35100">Measuring the Impact of Data Centers in the United States Economy</a>&#8220;) looks at the environmental damage caused by data centers, using location and physical-attribute data on roughly 2,800 US data centers operating in 2025 from S&amp;P Global. Data centers consume around 250 TWh of electricity each year, which is 5 to 6 percent of all US generation, and they cause about $25 billion in damages from local air pollution and greenhouse gas emissions. Texas and Virginia alone account for 30 percent of the national total, and planned expansion could grow electricity demand and damages by up to 85 percent in the near term.</p><p><em>Figure 5 from Muller (2026), &#8220;<a href="https://www.nber.org/papers/w35100">Measuring the Impact of Data Centers in the United States Economy</a>,&#8221; NBER Working Paper 35100. &#8220;Gross External Damages&#8221; (GED) is the monetary value of harms from local air pollution and greenhouse gas emissions caused by the electricity used to power data centers in each state. Used with attribution.</em></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!VciE!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!VciE!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 424w, https://substackcdn.com/image/fetch/$s_!VciE!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 848w, https://substackcdn.com/image/fetch/$s_!VciE!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 1272w, https://substackcdn.com/image/fetch/$s_!VciE!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!VciE!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png" width="1445" height="1188" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1188,&quot;width&quot;:1445,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;Gross External Damages from Data Centers by State&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="Gross External Damages from Data Centers by State" title="Gross External Damages from Data Centers by State" srcset="https://substackcdn.com/image/fetch/$s_!VciE!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 424w, https://substackcdn.com/image/fetch/$s_!VciE!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 848w, https://substackcdn.com/image/fetch/$s_!VciE!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 1272w, https://substackcdn.com/image/fetch/$s_!VciE!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F679201b6-caa3-4ed1-94b7-c6ecaa1f486c_1445x1188.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>Muller notes that even with these costs, the damages from AI-related energy use look small compared to the productivity gains AI may bring. One reproducibility note: the underlying facility-level data come from a commercial S&amp;P Global subscription, so other researchers can build on the methodology but would need their own access to fully replicate the facility list.</p><p>Czaplicki and coauthors (&#8221;<a href="https://www.nber.org/papers/w35113">A Blended Data Approach to Measuring Monthly Housing Starts: Satellite Imagery, Survey Data and More!</a>&#8220;) describe how the Census Bureau is using convolutional neural networks on monthly satellite imagery to predict new residential construction, then combining those predictions with existing building permit survey data. It is a useful example of how AI methods are working their way into official statistics production.</p><h2>Week ending April 27</h2><p>Yin, Vu, and Persico (&#8221;<a href="https://www.nber.org/papers/w35110">How (un)Stable Are LLM Occupational Exposure Scores?</a>&#8220;) test something that a lot of recent economics papers depend on: the practice of asking an LLM to score how exposed each occupation is to AI. They run the same scoring task through three different frontier LLMs and find the answers disagree dramatically: average exposure scores differ by a factor of 3.6 across models, and the models agree with each other only about 57 percent of the time. This matters because researchers then use these scores to study AI&#8217;s effects on labor markets. The authors show that depending on which model you ask, an estimated effect on county-level outcomes can flip from significantly negative to slightly positive. The takeaway: LLM-generated variables are not stable measurement tools. Treating an LLM as if it were a fixed instrument, the way researchers might treat a thermometer, can quietly produce very different conclusions depending on which model you happened to use.</p><p>Babina (&#8221;<a href="https://www.nber.org/papers/w35123">Understanding Firms&#8217; AI Efforts and Their Economic Impact</a>&#8220;) reviews firm-level data on AI and the emerging evidence on AI&#8217;s economic effects, arguing that measurement is central. Different AI datasets capture different things, including invention versus use, internal capability versus outsourcing, and realized activity versus investor perceptions, and can lead to different conclusions. The paper develops a framework for choosing among these measures and synthesizes evidence across firm growth, valuation, productivity, risk, labor, competition, and financial markets.</p><h2>Last week of April (May 4 digest)</h2><p>Many papers this week, with the BTOS AI supplement results and the Hill and Stein AlphaFold paper that will be presented at the NBER AI in Healthcare meeting on Friday.</p><p>Bonney, Breaux, Dinlersoz, Foster, Haltiwanger, and Pande (&#8221;<a href="https://www.nber.org/papers/w35141">The Microstructure of AI Diffusion: Evidence from Firms, Business Functions, and Worker Tasks</a>,&#8221; also available as a <a href="https://www.census.gov/library/working-papers/2026/adrm/CES-WP-26-25.html">CES working paper</a>) use the 2026 AI supplement to the U.S. Census Bureau&#8217;s Business Trends and Outlook Survey to characterize AI diffusion across three layers. From November 2025 to January 2026, 18 percent of firms used AI in at least one function (32 percent employment-weighted), with adoption expected to reach 22 percent within six months. Use is concentrated in large firms and knowledge-intensive sectors, reaching 50 to 60 percent (60 to 70 percent employment-weighted) among very large firms in Information, Professional Services, and Finance.</p><p><em>Figure 7 from Bonney, Breaux, Dinlersoz, Foster, Haltiwanger, and Pande (2026), &#8220;<a href="https://www.nber.org/papers/w35141">The Microstructure of AI Diffusion</a>,&#8221; NBER Working Paper 35141. Used with attribution.</em></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!QAvC!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!QAvC!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 424w, https://substackcdn.com/image/fetch/$s_!QAvC!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 848w, https://substackcdn.com/image/fetch/$s_!QAvC!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 1272w, https://substackcdn.com/image/fetch/$s_!QAvC!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!QAvC!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png" width="1262" height="978" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:978,&quot;width&quot;:1262,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;AI Use Rate by Business Function&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="AI Use Rate by Business Function" title="AI Use Rate by Business Function" srcset="https://substackcdn.com/image/fetch/$s_!QAvC!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 424w, https://substackcdn.com/image/fetch/$s_!QAvC!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 848w, https://substackcdn.com/image/fetch/$s_!QAvC!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 1272w, https://substackcdn.com/image/fetch/$s_!QAvC!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6ebab8f0-973e-4d97-acb7-53b5b5337052_1262x978.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>Among adopters, scope is limited: 57 percent use AI in three or fewer functions, most often Sales and Marketing (52 percent), Strategy (45 percent), and IT (41 percent). Most firms (66 percent) use AI for task augmentation; employment reductions are rare (2 percent). The data show both top-down and bottom-up diffusion: worker use can occur without firm adoption, and vice versa. This is the most representative US firm-level picture of AI use we have to date; the BTOS data are also freely available, so other researchers can use them too. My colleagues and I have done this in a <a href="https://jamanetwork.com/journals/jama-health-forum/fullarticle/2841460">recent JAMA Health Forum piece</a> examining how AI use in healthcare has evolved relative to other industries.</p><p>Hill and Stein (&#8221;<a href="https://www.nber.org/papers/w35143">How Artificial Intelligence Shapes Science: Evidence from AlphaFold</a>&#8220;) study what happened to biology research after AlphaFold2 was released. AlphaFold is an AI tool that can predict the three-dimensional shape of a protein from its molecular sequence (a task that used to take experimental biologists months or years of laboratory work). In July 2021, hundreds of thousands of these AI-predicted protein structures suddenly became freely available to researchers around the world. So far, surprisingly, the rate at which biologists determine protein structures the old-fashioned experimental way has barely changed. Instead, researchers are using AlphaFold&#8217;s predictions to complement their experimental work rather than replace it. The bigger effect shows up downstream: research on proteins that previously had no known structure increased by 15 to 40 percent, meaning AI is shifting biologists&#8217; attention toward proteins they used to ignore. So far there is no sign that drug developers are following, but that may come later. Hill and Stein will present this paper at the NBER AI in Healthcare meeting on Friday.</p><p>Cao, Jiang, and Xu (&#8221;<a href="https://www.nber.org/papers/w35142">Seeing the Goal, Missing the Truth: Human Accountability for AI Bias</a>&#8220;) study a subtle problem with using LLMs to generate research variables. They find that if you tell an LLM what you plan to do with its output (for example, &#8220;I&#8217;m going to use this sentiment score to predict stock returns&#8221;), the LLM quietly tilts its answers in ways that fit that purpose, even when you asked it for something that should be independent of the downstream task. This biased output makes the researcher&#8217;s predictions look better on data the LLM has already seen during training, but provides no real advantage on data after its knowledge cutoff. In other words, the LLM is overfitting to the goal you mentioned, not actually finding new signal. The authors argue this is not a flaw in the AI itself but a problem of research design: when researchers reveal their goal to the model, they unknowingly contaminate the measurement. A useful warning for any empirical paper that asks an LLM to generate variables.</p><p>Davidson, Halperin, Houlden, and Korinek (&#8221;<a href="https://www.nber.org/papers/w35155">When Does Automating AI Research Produce Explosive Growth? Feedback Loops in Innovation Networks</a>&#8220;) build a model of what happens when AI is used to do AI research itself, creating a feedback loop where each generation of AI helps build the next one faster. They identify the conditions under which this loop produces &#8220;explosive&#8221; growth, meaning growth that accelerates rather than slowing down over time. Two reinforcing channels matter: better AI in one research area makes researchers in other areas more productive too, and higher economic output from AI generates more money to fund further AI research. In a simulation calibrated to current AI trends, fully automating software research and just modestly automating research in other areas (5 percent) generates a singularity-like takeoff within six years. Whether you find the prediction credible or not, the framework is useful for thinking through how AI feedback loops could play out.</p><p>Carlin, Israelsen, and Wazzan (&#8221;<a href="https://www.nber.org/papers/w35153">AI Managed Household Portfolios: A Preliminary Report</a>&#8220;) test whether LLMs can manage a stock portfolio for a typical household. They collect daily stock recommendations from several LLMs and find that the AI tends to suggest portfolios that are not very diversified, are heavily weighted toward big well-known companies, and seem driven mostly by how much media attention a company is getting. When the authors look at whether either buy-and-hold or actively managed AI portfolios beat the market on a risk-adjusted basis, they don&#8217;t. A useful reality check for the AI-as-financial-advisor narrative.</p><p>This made me think of recent work in progress by Choukhmane, de Silva, Lin, and Akuzawa, <a href="https://www.timdesilva.me/files/papers/llm_advice.pdf">&#8220;AI Financial Advice: Supply, Demand, and Life Cycle Implications&#8221;</a>, presented at the <a href="https://www.nber.org/conferences/economics-aging-program-meeting-spring-2026">NBER Economics of Aging Program meeting this spring</a>. They survey 1,000 US adults, ask them to write the prompts they would actually send an LLM for spending and investment advice, and then simulate how those individuals&#8217; lives would play out over a full life cycle if they followed the advice GPT-5.2 gave them. Their three findings are useful counterpoints to the Carlin et al. result. First, following LLM advice would move most people closer to what life cycle theory recommends: broader stock market participation, age-declining equity shares, and meaningful saving buffers. Second, the LLM still relies heavily on simple heuristics (round-number savings rates, the 4 percent withdrawal rule) and does not smooth consumption well around shocks like job loss. Third, the LLM gives systematically different advice depending on who is asking: women, individuals with low financial literacy, and those without prior AI experience receive advice that produces 4-6 percent less wealth at age 60, with about two-thirds of the gender gap driven by women writing different prompts and one-third by the LLM giving different advice to identical prompts with different gender labels. Taken together with Carlin et al., the picture is mixed: AI as a stock picker looks not fully great, but AI as a life cycle financial coach looks more promising, with the caveat that what people get out depends a lot on what they put in.</p><p>Afrouzi, Blanco, Drenik, and Hurst (&#8221;<a href="https://www.nber.org/papers/w35157">Automation, Learning, and Career Dynamics</a>&#8220;) develop a continuous-time general equilibrium model where workers acquire skill through tasks and find that economies with high learning capacity admit pairs of stationary equilibria strictly ranked by the aggregate learning rate. Cheaper automation has opposite effects across them: in the high-learning equilibrium, it raises welfare through learning; in the low-learning equilibrium, it tips the economy into a human-capital trap. The planner&#8217;s first-best combines a tax on automation profits with a subsidy on frontier-maintenance expenditures.</p><p>Liu, Shang, and Jin (&#8221;<a href="https://arxiv.org/abs/2604.06688">Diagon: When Agent Markets Arrive</a>&#8220;) build a simulated marketplace where AI agents (built on different LLMs) hire each other to do tasks. The agents post jobs, bid on them, negotiate prices, deliver work, and rate each other afterward, building a full agent economy in miniature. The headline finding: agents that trade with each other end up 3.2 times wealthier than agents that just do their own work, so there are real gains from specialization and exchange even among AIs. But the design of the marketplace matters a lot. When the authors let agents see which underlying LLM each counterparty was built on, the market split into cliques along model-family lines and the gains from trade collapsed. And telling agents to be &#8220;honest&#8221; produced more disputes than telling them to be adversarial, because honest evaluation of bad work creates conflict. The paper is an early attempt to study how AI-only economies might actually behave, and what rules would need to be in place to make them work.</p><h2>Books and reading</h2><p>Tyler Cowen has published a new short book, <em>The Marginal Revolution: Rise and Decline, and the Pending AI Revolution</em> (Mercatus Center, 2026). The &#8220;marginal revolution&#8221; of the 1870s gave economics its core analytical move: always ask about the next unit, always think at the margin. Don&#8217;t ask &#8220;what is the value of water?&#8221;, ask &#8220;what is one more glass of water worth to someone who already has plenty?&#8221; That shift to thinking at the margin became the foundation of modern economic theory. Cowen&#8217;s central claim is that this kind of intuitive theoretical thinking has been losing ground in the top journals for decades, with empirical work increasingly dominating, and he argues AI will accelerate this shift further. On a related note, I am hoping to ask David Bradford to speak on Friday&#8217;s panel about practical advice for using AI tools in econ theory research as well.</p><h2>Tune in to the NBER panel this Friday</h2><p>The closing panel at the NBER AI in Healthcare Spring 2026 meeting, &#8220;Practical Advice for Using AI in Health Economics Research,&#8221; runs Friday May 8, 2:50 to 3:50 PM Eastern. Scott Cunningham will frame the production-versus-verification economics of AI in research; David Bradford will speak from the editor&#8217;s seat on what positions journals should take on AI-assisted submissions; Coady Wing will cover what AI-assisted workflows actually look like in practice for health economists, including reproducibility and synthetic-data pressure-testing. I will fill in on data use agreements, HIPAA, and the architectural choices researchers face when restricted health data meets AI tools.</p><p>Watch on the <a href="https://www.nber.org/conferences/applications-artificial-intelligence-healthcare-spring-2026">NBER YouTube livestream</a>, and feel free to send questions. I will share notes and follow-up reading after the meeting.</p><p>A reminder: most of the research summarized above consists of working papers that have not been peer reviewed. They are shared by their authors for discussion and comment, and findings may be revised before or during the publication process. Where I cover published journal articles, I note that. These are just my takes, no opinions to be attributed to the authors or anyone else.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://franklythecounterfactual.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Frankly, the counterfactual was worse! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[Health policy research and more]]></title><description><![CDATA[Hello everyone,]]></description><link>https://franklythecounterfactual.substack.com/p/health-policy-research-and-more</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/health-policy-research-and-more</guid><dc:creator><![CDATA[Coady Wing]]></dc:creator><pubDate>Tue, 21 Apr 2026 13:01:49 GMT</pubDate><content:encoded><![CDATA[<p>Hello everyone,</p><p>Since 2011, the O&#8217;Neill School Health Policy Workshop has met on Thursdays at 9:30 to discuss research and ideas in health economics, health policy, and population health. It&#8217;s the main place we share work in progress, connect with researchers visiting from other universities, and plan new projects. </p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://franklythecounterfactual.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Frankly, the counterfactual was worse! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>This Substack is our attempt to open that conversation up.</p><p>Each week, we&#8217;ll post a preview of the upcoming speaker and their research. We&#8217;ll also publish blog posts and other writing on related themes, aimed at a broader audience of students, alumni, journalists, policymakers, and anyone else curious about the questions our field is working on.</p><p>If you were part of the workshop when you were at IU, or have visited us in the past, we hope this makes it easier to stay in touch and stay involved. If you&#8217;re new here, we&#8217;re excited to have you along, and we hope you&#8217;ll find the material interesting and engaging.</p><p>Here&#8217;s what you can expect from us:</p><p>&#8226; Workshop previews and speaker spotlights &#8212; before our upcoming talks and events, we&#8217;ll introduce the speaker and the ideas they&#8217;re bringing to the table, so you can show up (or tune in) with context.</p><p>&#8226; Blog posts &#8212; accessible write-ups on research we&#8217;re excited about, debates worth having, and findings we think deserve a wider audience.</p><p>&#8226; Other content &#8212; conversations with researchers, new data explainers, reading lists, event recaps, and whatever else seems worth sharing.</p><p>We&#8217;re glad you&#8217;re here. If you ever have thoughts, questions, or things you&#8217;d like to see us cover, hit reply.</p><p>Warmly,</p><p>Coady Wing, Kosali Simon, Seth Freedman, and Alberto Ortega</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://franklythecounterfactual.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Frankly, the counterfactual was worse! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[AI in Econ: Week ending April 6th ]]></title><description><![CDATA[A research roundup]]></description><link>https://franklythecounterfactual.substack.com/p/ai-in-econ-week-ending-april-6th</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/ai-in-econ-week-ending-april-6th</guid><dc:creator><![CDATA[Kosali Simon]]></dc:creator><pubDate>Tue, 07 Apr 2026 23:15:48 GMT</pubDate><content:encoded><![CDATA[<p>First weekly post to start Q2 2026. See 2026 year-to-date summaries at: </p><div class="digest-post-embed" data-attrs="{&quot;nodeId&quot;:&quot;7f68379a-4f52-461f-8669-dda6d9fed633&quot;,&quot;caption&quot;:&quot;AI in Economics: A Weekly Research Roundup, starting with a Q1 2026 Summary&quot;,&quot;cta&quot;:&quot;Read full story&quot;,&quot;showBylines&quot;:true,&quot;size&quot;:&quot;lg&quot;,&quot;isEditorNode&quot;:true,&quot;title&quot;:&quot;AI in Economics&quot;,&quot;publishedBylines&quot;:[{&quot;id&quot;:248445992,&quot;name&quot;:&quot;Kosali Simon&quot;,&quot;bio&quot;:&quot;Faculty, IU O'Neill School. Health policy researcher using large-scale data. Writes from the perspective of someone who enjoys producing research, teaching, and building institutional research supports.&quot;,&quot;photo_url&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/f0077749-65c8-4b3d-b9af-0b12178613b9_2933x2933.jpeg&quot;,&quot;is_guest&quot;:false,&quot;bestseller_tier&quot;:null}],&quot;post_date&quot;:&quot;2026-04-07T22:52:11.699Z&quot;,&quot;cover_image&quot;:&quot;https://substackcdn.com/image/fetch/$s_!GqCr!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F622d4e3b-9e5d-4bef-9316-f1911b472db4_1024x608.png&quot;,&quot;cover_image_alt&quot;:null,&quot;canonical_url&quot;:&quot;https://franklythecounterfactual.substack.com/p/ai-in-economics&quot;,&quot;section_name&quot;:&quot;O'Neill Group Blog&quot;,&quot;video_upload_id&quot;:null,&quot;id&quot;:193520222,&quot;type&quot;:&quot;newsletter&quot;,&quot;reaction_count&quot;:0,&quot;comment_count&quot;:0,&quot;publication_id&quot;:8412568,&quot;publication_name&quot;:&quot;Frankly, the counterfactual was worse&quot;,&quot;publication_logo_url&quot;:&quot;&quot;,&quot;belowTheFold&quot;:false,&quot;youtube_url&quot;:null,&quot;show_links&quot;:null,&quot;feed_url&quot;:null}"></div><p>This week (ending April 6th 2026) sees another Acemoglu et al paper on AI&#8217;s effects on knowledge. Following the &#8220;knowledge collapse&#8221; paper from March, Acemoglu, Lin, Ozdaglar, and Siderius (&#8220;<a href="https://www.nber.org/papers/w35036">How AI Aggregation Affects Knowledge</a>&#8221;) model what happens when AI systems aggregate population beliefs and feed synthesized signals back as training data. They find a threshold effect: when the AI aggregator updates too quickly, there is no set of training weights that robustly improves learning across a broad class of environments. Local aggregators trained on proximate or topic-specific data, however, robustly improve learning in all settings, meaning that replacing specialized local AI systems with a single global one can make everyone worse off. It&#8217;s a formal argument for why one-size-fits-all AI may be worse than domain-specific tools.</p><p>Fang, Gu, Yan, and Zhu (&#8220;<a href="https://www.nber.org/papers/w35022">AI Patents in the United States and China</a>&#8221;) develop a high-precision classifier for AI patents and apply it to US patents from 1976-2023 and Chinese patents from 2010-2023. They find broad convergence in AI patenting intensity, even as China has surpassed the US in annual patent counts, but the organization of AI innovation differs sharply: US patenting is concentrated among large private firms, while China&#8217;s is more geographically diffuse with larger roles for universities and state-owned enterprises. Cross-border citation patterns suggest continued technological interdependence rather than decoupling.</p><p>Also relevant to the AI-and-decision-making theme: Handel, Kolstad, Malmendier et al. (&#8220;<a href="https://www.nber.org/papers/w35034">Thinking versus Doing</a>&#8221;) use granular electronic medical records to show that emergency department physicians under higher cognitive load substitute deliberation with more numerous but less precise diagnostic tests, increasing inpatient admissions by 28% at the highest load levels. The finding sharpens the case for where AI clinical decision support could add the most value, and connects to earlier work we covered on the gap between AI enthusiasm and actual diagnostic improvement.</p><p>Excited to see what next week brings in new working papers in AI+Econ. </p><p>We have many places to digest and learn from.</p><h2>Blogs and Resources to Follow</h2><p>If you want to follow the economics of AI more regularly, a few sources are worth bookmarking. <strong>Anton Korinek</strong> (UVA) maintains a <a href="https://genaiforecon.substack.com/">Substack</a> and resource site (<a href="https://genaiforecon.org/">genaiforecon.org</a>) tracking how economists study and use AI. <strong>Tyler Cowen and Alex Tabarrok&#8217;s</strong> <a href="https://marginalrevolution.com/">Marginal Revolution</a> is the most widely read economics blog and regularly highlights AI research &#8212; this quarter alone, Cowen published an essay on how the <a href="https://marginalrevolution.com/marginalrevolution/2026/03/marginal-revolution-rise-and-decline-and-the-pending-ai-revolution.html">AI revolution will reshape economic knowledge</a> (March 25), a post on the <a href="https://marginalrevolution.com/marginalrevolution/2026/03/some-simple-economics-of-ai.html">simple economics of AI</a> and competitive advantage (March 18), and highlighted Brynjolfsson&#8217;s analysis suggesting <a href="https://marginalrevolution.com/marginalrevolution/2026/02/you-see-tech-and-ai-everywhere-but-in-the-productivity-statistics.html">US productivity growth roughly doubled in 2025</a>. <strong>Noah Smith&#8217;s</strong> <a href="https://noahpinion.substack.com/">Noahpinion</a> makes the economics of AI accessible to a broad audience. And <strong>Susan Athey</strong> (Stanford) is worth following for her work applying ML and AI to economic problems.</p><p>Several economists also write Substacks that touch on how AI is changing research practice and policy: <strong>Chris Blattman</strong>(<a href="https://claudeblattman.com/">chrisblattman.com</a>), <strong>Scott Cunningham</strong> (<a href="https://causalinf.substack.com/">Causal Inference</a>), <strong>Jason Fletcher</strong> (<a href="https://jasonmfletcher.substack.com/">The Mentorless Apprentice</a>), and <strong>Paul Goldsmith-Pinkham</strong> (<a href="https://paulgp.substack.com/">paulgp</a>).</p>]]></content:encoded></item><item><title><![CDATA[AI in Economics]]></title><description><![CDATA[A Weekly Research Roundup]]></description><link>https://franklythecounterfactual.substack.com/p/ai-in-economics</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/ai-in-economics</guid><dc:creator><![CDATA[Kosali Simon]]></dc:creator><pubDate>Tue, 07 Apr 2026 22:52:11 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!GqCr!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F622d4e3b-9e5d-4bef-9316-f1911b472db4_1024x608.png" length="0" type="image/jpeg"/><content:encoded><![CDATA[<h1>AI in Economics: A Weekly Research Roundup, starting with a Q1 2026 Summary</h1><p><em>By Kosali Simon, O&#8217;Neill School of Public and Environmental Affairs, Indiana University</em></p><p>Do corporate executives experience an AI &#8220;productivity paradox&#8221;, perceiving gains that don&#8217;t yet show up in the numbers? Does a higher minimum wage speed up robot adoption? Why might <em>better</em> AI make society <em>less</em>knowledgeable? When AI creates genuinely new types of jobs, are they actually different from just more of the old ones?</p><p></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!GqCr!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F622d4e3b-9e5d-4bef-9316-f1911b472db4_1024x608.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!GqCr!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F622d4e3b-9e5d-4bef-9316-f1911b472db4_1024x608.png 424w, https://substackcdn.com/image/fetch/$s_!GqCr!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F622d4e3b-9e5d-4bef-9316-f1911b472db4_1024x608.png 848w, 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y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>Economists are producing a surge of research on AI, and the findings are relevant well beyond economics. <em>Each week, I scan new working paper listings for three areas of research</em>: 1)<strong>AI as a subject of economic study:</strong> how AI is changing labor markets, productivity, trade, public finance, healthcare, energy, and creative industries; 2)<strong>AI as a tool for doing economics</strong>: how machine learning, LLMs, computer vision, and agentic coding are expanding what empirical researchers can measure, classify, and estimate; and 3)<strong>AI as an economic actor</strong>: what happens when AI agents bargain, trade, collude, or compete in strategic and market settings.</p><p>This Substack makes that research accessible in short, digestible <strong>weekly summaries</strong> with links. Most of the research covered here consists of publicly posted working papers, shared in the spirit of early-stage dissemination for discussion. These papers have not been peer reviewed and findings may be revised; where I cover published journal articles, I note that. Below: what I cover, where I draw from, and a full Q1 2026 catch-up archive with 13 individual weeks of highlights.</p><p>As someone who both uses AI tools in empirical research and thinks about research support from an administrative perspective, <strong>I&#8217;ll also occasionally write about practical questions facing university researchers and the institutions that support them</strong>: how to enable AI-assisted research workflows, what&#8217;s involved in using AI tools with non-public or restricted-access data, and how emerging institutional arrangements (data use agreements, compliance frameworks, computing infrastructure) are shaping what research is possible and who can do it.</p><h3>What I draw from for weekly research summaries:</h3><p><strong>Every week</strong>: I scan working papers (the <a href="https://www.nber.org/subscribe">NBER "New This Week"</a> email, <a href="https://nep.repec.org/">NEP-AIN</a> (New Economics Papers &#8212; Artificial Intelligence) digest from RePEc, which catches working papers from IZA, CESifo, OECD, World Bank). I also monitor Google Scholar alerts and highlight newly published journal articles in economics outlets, conference sessions with available webcasts, and noteworthy blog commentary from economists writing about AI. I verify that a full paper (not just an abstract) is accessible and that author affiliations are current &#8212; a step that has proved necessary as metadata errors and even fabricated entries have appeared in working paper repositories. (In one case, I wrote to the authors to say I saw their abstract posted in a reputable series and could I see the full paper, and it was news to them; I learned the abstract had been faked by someone else!)</p><p>This is necessarily a selective view of a large and fast-moving literature, but my aim is to pick the papers most likely to be of broad interest.</p><h3>What to expect:</h3><p><strong>Weekly posts</strong> will be a paragraph or two covering the AI-relevant papers with hyperlinked titles and summaries.</p><p><strong>Occasional longer posts</strong> will cover published journal highlights, conference recaps, or thematic roundups.</p><p><em>The rest of this launch post is the catch-up edition.</em></p><h2>Recently Published: Economics of AI in the Journals</h2><p>Before diving into the weekly digests, a few recently published journal articles worth highlighting. A landmark study in this space is Brynjolfsson et al., &#8220;<a href="https://academic.oup.com/qje/article/140/2/889/7990658">Generative AI at Work</a>&#8220; (<em>Quarterly Journal of Economics</em>, 2025), which studies over 5,000 customer-support agents and finds that AI assistance increases productivity by 15% on average, as measured by issues resolved per hour. The gains vary substantially across workers, with the largest improvements accruing to less experienced and lower-skilled agents.</p><p>Also noteworthy: Acemoglu&#8217;s &#8220;<a href="https://www.nber.org/papers/w32487">The Simple Macroeconomics of AI</a>&#8220; generated intense debate for arguing that, under specific assumptions about task exposure and the absence of new task creation, AI&#8217;s near-term productivity gains may be more modest than widely predicted. For those interested in AI as a research tool specifically, Korinek&#8217;s &#8220;<a href="https://www.aeaweb.org/articles?id=10.1257/jel.20231736">Generative AI for Economic Research</a>&#8220; (<em>Journal of Economic Literature</em>, with periodic updates) provides a practical hands-on guide. And a provocative new entry: Novy-Marx and Velikov, &#8220;<a href="https://www.aeaweb.org/articles?id=10.1257%2Fjel.20251821">Artificial Intelligence-Powered (Finance) Scholarship</a>&#8220; (<em>Journal of Economic Literature</em>, March 2026), demonstrates that LLMs can generate hundreds of complete academic finance papers from template reports, raising questions both about AI&#8217;s capabilities and about the fragility of empirical standards in finance research.</p><p>The field is attracting dedicated journal attention. The <em>Economic Journal</em> recently closed a call for papers for a special issue on &#8220;AI Measurement in Applied Economics,&#8221; so we should see that in the near future; <em>Experimental Economics</em>has a special issue on &#8220;<a href="https://www.cambridge.org/core/journals/experimental-economics/announcements/call-for-papers/call-for-papers-special-issue-of-experimental-economics-on-human-ai-interaction">Human-AI Interaction</a>,&#8221; and the <em>Journal of Financial Econometrics</em> is accepting papers on &#8220;<a href="https://academic.oup.com/jfec/pages/machine-learning-cfp-2026">Machine Learning in Financial Econometrics</a>.&#8221; A forthcoming NBER volume on <em>The Economics of Transformative AI</em>(edited by Agrawal, Brynjolfsson, and Korinek) will also be worth watching.</p><p>Lets start the Q1 2026 weekly summary starting with January</p><h2>ASSA 2026 Annual Meeting Highlights (January, Philadelphia)</h2><p>The 2026 AEA Annual Meeting featured several AI-focused sessions with free webcasts:</p><p><a href="https://www.aeaweb.org/webcasts/2026/ai-and-productivity">**AI and Productivity: Is This Time Different?**</a> McElheran, Yang, Kroff, and Brynjolfsson present Census-based evidence on AI&#8217;s J-curve-shaped returns in American manufacturing: short-term performance losses precede longer-term gains. A second paper projects, under a micro-to-macro framework, aggregate TFP gains from AI of 0.3-0.9 percentage points annually.</p><p><a href="https://www.aeaweb.org/conference/webcasts/2026/recent-developments">**Recent Developments in AI and the Labor Market**</a> A two-hour lecture by Danielle Li (MIT), co-author of the landmark &#8220;Generative AI at Work&#8221; QJE paper, surveying the state of evidence.</p><p><a href="https://www.aeaweb.org/conference/2026/program/1259">**Artificial Intelligence and Human Beliefs**</a> Three papers on how humans perceive AI: people overestimate AI&#8217;s alignment with human choices, project human task-difficulty onto AI, and benefit most from AI when they have accurate beliefs about their own ability.</p><p><a href="https://www.aeaweb.org/conference/2026/program/2009">**Current State of AI in Finance**</a> Including work suggesting AI may reverse historical patterns in skill demand, potentially favoring lower-educated, lower-paid occupations.</p><h2>Week of January 5, 2026</h2><p>Two papers connect to AI from different angles. Gans et al. (&#8221;<a href="https://www.nber.org/papers/w34639">O-Ring Automation</a>&#8220;) challenge a common approach to measuring which jobs are most vulnerable to automation. Most forecasts add up how &#8220;exposed&#8221; each of a worker&#8217;s tasks is and treat automation risk as an average, but when tasks are quality complements (where one weak link ruins the whole chain), automating some tasks can actually raise the value of the human work that remains. The implication: widely cited exposure indices may significantly overstate job displacement. Separately, Bergant et al. (&#8221;<a href="https://www.nber.org/papers/w34615">Expanding the Landscape of Cross-Border Flow Restrictions</a>&#8220;) demonstrate AI as a powerful research tool, using large language models to read and classify decades of official government documents on capital controls, constructing a dataset that would have been impractical to build by hand.</p><h2>Week of January 12, 2026</h2><p>Abaluck et al. (&#8221;<a href="https://www.nber.org/papers/w34660">Does LLM Assistance Improve Healthcare Delivery?</a>&#8220;) put AI directly to the test in healthcare, deploying large language model decision support for health workers at outpatient clinics in Nigeria. Health workers changed their prescribing for over half of patients after receiving LLM feedback and reported high satisfaction, but on-site physicians who independently examined the same patients found little to no improvement in diagnostic accuracy or treatment quality. It&#8217;s a valuable reality check: user enthusiasm for AI tools doesn&#8217;t automatically translate into better outcomes. On the theory side, Benzell et al. (&#8221;<a href="https://www.nber.org/papers/w34668">Automation Experiments and Inequality</a>&#8220;) tackle a question running through many recent AI experiments: does AI help low-skill workers more than high-skill ones? They show the inequality effect is likely non-monotonic: as AI improves, inequality may first decrease then increase. Finally, Oreopoulos et al. (&#8221;<a href="https://www.nber.org/papers/w34683">How In-School Supervised Ed-Tech Support Produces Massive Learning Gains</a>&#8220;) find that Khan Academy produced half a standard deviation gain in math achievement in Indian middle schools, but only when schools had dedicated staff ensuring the technology was actually used well. For AI tools broadly, organizational infrastructure may matter more than the technology itself.</p><h2>Week of January 19, 2026</h2><p>Lots this week. On the applied side, Metcalfe et al. (&#8221;<a href="https://www.nber.org/papers/w34709">AI in Charge</a>&#8220;) report results from one of the world&#8217;s largest field experiments on AI-managed electric vehicle charging, finding a 42% reduction in peak-hour electricity demand with virtually all shifted to lower-cost, lower-carbon periods, and users rarely overrode the algorithm. Wang, Duflo, Obermeyer et al. (&#8221;<a href="https://www.nber.org/papers/w34690">AI-Enhanced Handheld ECGs</a>&#8220;) show that an AI algorithm paired with a low-cost handheld ECG device can identify patients with evidence of prior heart attacks in rural India at rates that make screening highly cost-effective. Manning et al. (&#8221;<a href="https://www.nber.org/papers/w34705">How Adaptable Are American Workers to AI-Induced Job Displacement?</a>&#8220;) find that most highly AI-exposed workers are well-positioned to manage transitions, but 6.1 million workers, concentrated in clerical roles, face both high exposure and low adaptive capacity. Gans (&#8221;<a href="https://www.nber.org/papers/w34712">A Model of Artificial Jagged Intelligence</a>&#8220;) formalizes why AI models can be excellent on one prompt and confidently wrong on a nearly identical one, showing that scaling improves average quality without eliminating this &#8220;jaggedness.&#8221; Chen et al. (&#8221;<a href="https://www.nber.org/papers/w34713">Teaching Economics to the Machines</a>&#8220;) develop a framework that pre-trains neural networks on structural economic model data before fine-tuning on real data, outperforming either approach alone. And Galiani et al. (&#8221;<a href="https://www.nber.org/papers/w34714">Measuring Efficiency and Equity Framing</a>&#8220;) use LLMs to classify 27,000+ economics articles from 1950 to 2021, documenting a striking shift from efficiency- to equity-focused framing since 1990. Also circulating: Chopra, Haaland, Roever, and Roth (&#8221;<a href="https://www.econstor.eu/handle/10419/313685">Evaluating Behavioral Interventions at Scale with AI</a>,&#8221; ECONtribute) show how LLMs can be used to evaluate large numbers of behavioral nudge interventions, opening up a new approach to intervention design.</p><h2>Week of January 26, 2026</h2><p>Three papers examine AI through asset markets, behavioral biases, and creative labor. Caballero (&#8221;<a href="https://www.nber.org/papers/w34722">Speculative Growth and the AI &#8216;Bubble&#8217;</a>&#8220;) develops a model in which AI technology can generate rational-expectations equilibria with elevated valuations that support rapid capital accumulation, but that are fragile and can collapse if beliefs shift. Because AI capital expands effective labor supply, the dynamics differ from prior technology booms. Bini et al. (&#8221;<a href="https://www.nber.org/papers/w34745">Behavioral Economics of AI: LLM Biases and Corrections</a>&#8220;) conduct the most comprehensive set of experiments testing whether LLMs exhibit the same systematic behavioral biases documented in humans. And Kim et al. (&#8221;<a href="https://www.nber.org/papers/w34733">Does Generative AI Crowd Out Human Creators?</a>&#8220;) provide some of the first platform-level evidence on what happens to human creative output when text-to-image AI arrives, studying a major artwork platform. From the broader working paper literature, Erlei and Meub (&#8221;<a href="https://arxiv.org/abs/2603.08853">LLM-Agent Interactions on Markets with Information Asymmetries</a>,&#8221; arXiv) study what happens when LLM-based agents trade in markets with asymmetric information, contributing to the growing body of work on AI as economic actor.</p><h2>Week of February 2, 2026</h2><p>Pretty impressive papers this week. Jones (&#8221;<a href="https://www.nber.org/papers/w34779">A.I. and Our Economic Future</a>&#8220;) asks the biggest question head-on: what happens when machines can perform every task humans can, but more cheaply? Writing for the <em>Journal of Economic Perspectives</em>, he argues AI may be qualitatively different from prior general-purpose technologies because it automates intelligence itself. Agrawal et al. (&#8221;<a href="https://www.nber.org/papers/w34781">Enhancing Worker Productivity Without Automating Tasks</a>&#8220;) push back on the dominant framing that AI primarily replaces workers, developing models where AI augments human productivity, with education and training policy shaping whether AI raises or lowers wage inequality. Reimers et al. (&#8221;<a href="https://www.nber.org/papers/w34777">AI and the Quantity and Quality of Creative Products</a>&#8220;) document what happened to book publishing after LLMs arrived: new releases tripled, average quality fell, but the top books in each category actually improved, and a calibrated model suggests consumer surplus could rise 25-50% in steady state. Gans (&#8221;<a href="https://www.nber.org/papers/w34780">Optimal Use of Preferences in AI Algorithms</a>&#8220;) provides design guidance on whether AI systems should embed preferences during training or apply them afterward. And Beraja et al. (&#8221;<a href="https://www.nber.org/papers/w34770">The Life-cycle of Concentrated Industries</a>&#8220;) apply their framework to AI industries, concluding a wait-and-see regulatory approach may outperform aggressive early intervention. Beyond NBER, Goldsmith-Pinkham, Tan, and Zentefis (&#8221;<a href="https://arxiv.org/abs/2601.13379">Human-AI Collaboration in Radiology: The Case of Pulmonary Embolism</a>&#8220;) study how AI-assisted diagnosis works in practice for a high-stakes medical condition, finding important complementarities between human and AI judgment. And Aldasoro, Gambacorta et al. (&#8221;<a href="https://www.eib.org/en/publications/20250009-ai-adoption-productivity-and-employment">AI Adoption, Productivity and Employment: Evidence from European Firms</a>,&#8221; BIS/EIB) provide large-scale European firm-level evidence on AI adoption patterns and their productivity and employment effects.</p><h2>Week of February 9, 2026</h2><p>Three papers on how AI interacts with human behavior. Hirshleifer et al. (&#8221;<a href="https://www.nber.org/papers/w34807">AI, Opinion Ecosystems, and Finance</a>&#8220;) find that the same technology, generative AI for content creation, produces strikingly different outcomes depending on where it&#8217;s deployed: better analysis on Seeking Alpha, more emotional distortion on WallStreetBets. AI amplifies whatever tendencies already exist in a community. Guenzel et al. (&#8221;<a href="https://www.nber.org/papers/w34808">AI Personality Extraction from Faces</a>&#8220;) use facial analysis of 96,000 MBA graduates&#8217; LinkedIn photos to extract traits that the authors interpret as personality measures, finding these predict compensation and career advancement, raising questions about the potential for statistical discrimination as such tools spread in industry hiring. And Bloom et al. (&#8221;<a href="https://www.nber.org/papers/w34813">The Politics of AI</a>&#8220;) document what looks like a partisan divide in AI adoption at work, Democrats report using AI about 25% more often, but show it&#8217;s entirely explained by education, industry, and occupation. Also circulating via NEP-AIN: Foltyn and Olsson (&#8221;<a href="https://openaccess.nhh.no/nhh-xmlui/handle/11250/3179078">The Worth of a &#8216;Wo&#8217;: Gender Bias in Financial Advice from LLMs</a>,&#8221; NHH Norway) find that LLMs provide systematically different financial advice depending on the perceived gender of the person asking, a finding with direct implications for AI deployment in advisory settings.</p><h2>Week of February 16, 2026</h2><p>New evidence on AI adoption, measurement, and productivity gaps. Yotzov, Barrero, Bloom et al. (&#8221;<a href="https://www.nber.org/papers/w34836">Firm Data on AI</a>&#8220;) present the first representative international survey of firm-level AI use across 6,000 executives in the US, UK, Germany, and Australia. About 70% of firms report actively using AI (though the 1.5 hours per week average among top executives suggests adoption depth varies considerably), and over 80% report no impact on employment or productivity over the past three years. Strikingly, executives predict AI will <em>cut</em> employment while employees predict it will <em>grow</em>. Cruces et al. (&#8221;<a href="https://www.nber.org/papers/w34851">Does Generative AI Narrow Education-Based Productivity Gaps?</a>&#8220;) run a randomized experiment finding that AI access closes roughly three-quarters of the productivity gap between lower- and higher-education participants. Asirvatham, Mokski, and Shleifer (&#8221;<a href="https://www.nber.org/papers/w34834">GPT as a Measurement Tool</a>&#8220;) validate GPT for quantifying attributes in qualitative data, generally indistinguishable from human evaluators, then document a tenfold decline in technology adoption lags over the industrial age. And Cohen et al. (&#8221;<a href="https://www.nber.org/papers/w34849">Mimicking Finance</a>&#8220;) use AI to predict 71% of mutual fund managers&#8217; trade directions, finding less predictable managers outperform. From the broader working paper literature, Misch, Park, Pizzinelli, and Sher (&#8221;<a href="https://www.cesifo.org/en/publications/2026/working-paper/artificial-intelligence-and-productivity-europe">Artificial Intelligence and Productivity in Europe</a>,&#8221; CESifo/IMF) provide cross-country evidence on AI&#8217;s productivity effects in European economies, complementing the firm-level survey evidence above.</p><h2>Week of February 23, 2026</h2><p>Some key papers this week. Acemoglu, Autor, and Johnson (&#8221;<a href="https://www.nber.org/papers/w34854">Building Pro-Worker Artificial Intelligence</a>&#8220;) argue that AI&#8217;s most important potential, creating new tasks that expand what workers can do, is systematically underexploited. Market failures push investment toward labor replacement rather than augmentation, and they outline nine policy directions. Korinek et al. (&#8221;<a href="https://www.nber.org/papers/w34873">Public Finance in the Age of AI</a>&#8220;) tackle what happens to government revenue when AI erodes labor income and consumption as tax bases, borrowing a framework from natural resource economics to frame the taxation of autonomous AI systems as an optimal harvesting problem. Demirer, Horton et al. (&#8221;<a href="https://www.nber.org/papers/w34859">Chaining Tasks, Redefining Work</a>&#8220;) model production as a sequence where AI automates contiguous &#8220;chains&#8221; of steps, showing that standard task-by-task analysis misses the non-linear productivity gains. And Wang et al. (&#8221;<a href="https://www.nber.org/papers/w34861">Machine Learning Meets Markowitz</a>&#8220;) propose an end-to-end framework unifying return prediction and portfolio optimization.</p><h2>Week of March 2, 2026</h2><p>Two papers on very different dimensions. Acemoglu, Kong, and Ozdaglar (&#8221;<a href="https://www.nber.org/papers/w34910">AI, Human Cognition and Knowledge Collapse</a>&#8220;) present a provocative model: when agentic AI substitutes for the learning process itself, people stop doing the effortful learning that sustains society&#8217;s stock of general knowledge. Under conditions where human effort is sufficiently elastic, the result can be a &#8220;knowledge-collapse&#8221; steady state, and welfare is non-monotone in AI accuracy, meaning <em>better</em> AI can make society worse off past a threshold. Brynjolfsson et al. (&#8221;<a href="https://www.nber.org/papers/w34895">Minimum Wages and Rise of the Robots</a>&#8220;) provide empirical evidence that a 10% increase in the minimum wage raises robot adoption by roughly 8%, connecting minimum wage policy directly to the pace of automation.</p><h2>Week of March 9, 2026</h2><p>AI as economic actor, research method, and subject. Manning et al. (&#8221;<a href="https://www.nber.org/papers/w34937">General Social Agents</a>&#8220;) demonstrate that AI agents predict initial human play in novel strategic settings better than game-theoretic equilibria or cognitive hierarchy models, across 880,000+ novel games. Araujo et al. (&#8221;<a href="https://www.nber.org/papers/w34919">How Does AI Distribute the Pie?</a>&#8220;) put LLMs in the Ultimatum Game and find a distinct &#8220;altruistic&#8221; mode where AI proposes hyper-fair splits. Hassan, Kalyani, and Restrepo (&#8221;<a href="https://www.nber.org/papers/w34939">The Skill Premium in Times of Rapid Technological Change</a>&#8220;) show that the pace of new technology creation, the kind AI is accelerating, drives the skill premium. Athey et al. (&#8221;<a href="https://www.nber.org/papers/w34946">The Heterogeneous Earnings Impact of Job Loss</a>&#8220;) apply causal machine learning to Swedish data, revealing displacement losses vary as much <em>within</em> demographic groups as across them, pointing toward better-targeted policy. And Cohen et al. (&#8221;<a href="https://www.nber.org/papers/w34925">The Micro-Geography of Persuasion</a>&#8220;) use AI-enhanced computer vision on C-SPAN video to track Senate floor interactions at 10-second intervals. For those interested in methodological guidance, Cook et al. (&#8221;<a href="https://lcerpa.org/working_papers/">Guidance for the Use of AI in the Meta-Analysis of Economics Research</a>,&#8221; LCERPA) offer practical recommendations for researchers incorporating AI tools into meta-analytic workflows.</p><h2>Week of March 16, 2026</h2><p>Agrawal, McHale, and Oettl (&#8221;<a href="https://www.nber.org/papers/w34953">AI in Science</a>&#8220;) offer a framework for where AI helps most in research, characterizing it as enhanced search over combinatorial spaces, with returns varying sharply across domains and workflow stages. Productivity gains are nonlinear and amplified by the share of researchers with AI expertise. Akcigit et al. (&#8221;<a href="https://www.nber.org/papers/w34964">Attention (And Money) Is All You Need</a>&#8220;) document a striking talent drain: the top 1% of AI researchers in industry now earn $1.5 million more annually than comparable academics, a fivefold increase since 2001. Chen, Didisheim, and Somoza (&#8221;<a href="https://www.nber.org/papers/w34965">Out of the Black Box</a>&#8220;) develop entropy-based uncertainty measures from LLM token probabilities. And Greenhill, Walker, and Shapiro (&#8221;<a href="https://www.nber.org/papers/w34947">Deep Learning Projects Jurisdiction</a>&#8220;) show deep learning can project regulatory effects before implementation, outperforming domain expert models by a factor of 65. Also circulating: Yu (&#8221;<a href="https://www.cesifo.org/en/publications/2026/working-paper/impacts-ai-scale-evidence-research-scientists">The Impacts of AI at Scale: Evidence from Research Scientists</a>,&#8221; CESifo) provides empirical evidence on how AI adoption is affecting the productivity and research patterns of working scientists, directly relevant to anyone in the research community thinking about AI tools in their own work.</p><h2>Week of March 23, 2026</h2><p>Two papers this week, both with direct relevance to how organizations are experiencing AI right now. Baslandze et al. (&#8221;<a href="https://www.nber.org/papers/w34984">Artificial Intelligence, Productivity, and the Workforce: Evidence from Corporate Executives</a>&#8220;) survey nearly 750 corporate executives and document substantial heterogeneity in AI adoption, more than half of firms have invested, but many smaller firms are just beginning. They find a &#8220;productivity paradox&#8221; in which perceived productivity gains are larger than measured ones, likely reflecting delayed revenue realization. In labor markets, there&#8217;s little evidence of near-term aggregate employment declines, though larger companies anticipate AI-driven workforce reductions while smaller firms expect modest gains, and routine clerical roles are declining while demand for skilled technical roles increases. Separately, Autor et al. (&#8221;<a href="https://www.nber.org/papers/w34986">What Makes New Work Different from More Work?</a>&#8220;) study a mechanism that the AI-labor literature argues is a key countervailing force to automation: the creation of genuinely <em>new</em> occupational roles. Using newly available Census data spanning 1940-2023, they show new work is systematically different from simply more work in existing occupations, it attracts younger, more educated workers, commands persistent wage premiums, and those premiums decline as expertise diffuses. The finding suggests that new work serves as a counterweight to displacement not just by creating jobs, but by generating new domains of human expertise that command market value.</p><h2>Week of March 30, 2026</h2><p>Three papers this week speak directly to AI policy and adoption. Korinek and Stiglitz (&#8221;<a href="https://www.nber.org/papers/w34994">Steering Technological Progress</a>&#8220;) ask how to guide AI innovation so it creates better-paying jobs rather than simply replacing workers. They develop a framework identifying which properties make an innovation desirable from workers&#8217; perspective and find that the case for steering technology is strongest when social safety nets are weak. But beyond a critical threshold where labor&#8217;s economic value diminishes sufficiently, optimal policy shifts from steering innovation toward redistribution, and ultimately toward enhancing human well-being rather than labor productivity. Bick, Blandin, Deming, Fuchs-Schundeln, and Jessen (&#8221;<a href="https://www.nber.org/papers/w34995">Mind the Gap: AI Adoption in Europe and the U.S.</a>&#8220;) combine worker and firm surveys from 2025 and 2026 to document large gaps in AI adoption between the US and Europe and across European countries. Cross-country differences in worker demographics and firm composition explain an important share of these gaps, but firm personnel management practices and whether firms actively encourage AI use also matter considerably. At the macro level, industries with higher AI adoption rates have experienced faster productivity growth, though the authors are careful not to claim causality. And Jin, Sokol, and Wagman (&#8221;<a href="https://www.nber.org/papers/w35010">Adaptive Enforcement with AI-Augmented Monitoring</a>&#8220;) study what happens when regulators use AI to monitor firms that can adapt their behavior in response. They find that partial investments in AI monitoring can actually generate congestion rather than deterrence: the regulator repeatedly detects adaptive violations while the firm continues to redesign, and enforcement effectiveness depends as much on the precision of AI triage as on detection intensity.</p><h2>Blogs and Resources to Follow</h2><p>If you want to follow the economics of AI more regularly, a few sources are worth bookmarking. <strong>Anton Korinek</strong> (UVA) maintains a <a href="https://genaiforecon.substack.com/">Substack</a> and resource site (<a href="https://genaiforecon.org/">genaiforecon.org</a>) tracking how economists study and use AI. <strong>Tyler Cowen and Alex Tabarrok&#8217;s</strong> <a href="https://marginalrevolution.com/">Marginal Revolution</a> is the most widely read economics blog and regularly highlights AI research &#8212; this quarter alone, Cowen published an essay on how the <a href="https://marginalrevolution.com/marginalrevolution/2026/03/marginal-revolution-rise-and-decline-and-the-pending-ai-revolution.html">AI revolution will reshape economic knowledge</a> (March 25), a post on the <a href="https://marginalrevolution.com/marginalrevolution/2026/03/some-simple-economics-of-ai.html">simple economics of AI</a> and competitive advantage (March 18), and highlighted Brynjolfsson&#8217;s analysis suggesting <a href="https://marginalrevolution.com/marginalrevolution/2026/02/you-see-tech-and-ai-everywhere-but-in-the-productivity-statistics.html">US productivity growth roughly doubled in 2025</a>. <strong>Noah Smith&#8217;s</strong> <a href="https://noahpinion.substack.com/">Noahpinion</a> makes the economics of AI accessible to a broad audience. And <strong>Susan Athey</strong> (Stanford) is worth following for her work applying ML and AI to economic problems.</p><p>Several economists also write Substacks that touch on how AI is changing research practice and policy: <strong>Chris Blattman</strong>(<a href="https://claudeblattman.com/">chrisblattman.com</a>), <strong>Scott Cunningham</strong> (<a href="https://causalinf.substack.com/">Causal Inference</a>), <strong>Jason Fletcher</strong> (<a href="https://jasonmfletcher.substack.com/">The Mentorless Apprentice</a>), and <strong>Paul Goldsmith-Pinkham</strong> (<a href="https://paulgp.substack.com/">paulgp</a>).</p><p><em>A reminder: most of the research summarized above consists of working papers that have not been peer reviewed. They are shared by their authors for discussion and comment, and findings may be revised before or during the publication process. Where I cover published journal articles, I note that, but given publication lags in economics, there will be a lot to talk about in working papers.</em></p>]]></content:encoded></item><item><title><![CDATA[April 9th seminar: Dialysis, vertical integration, and why “profit sharing” might mean something you didn’t expect]]></title><description><![CDATA[Ryan McDevitt visits from Washington University in St. Louis]]></description><link>https://franklythecounterfactual.substack.com/p/april-9th-seminar-dialysis-vertical</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/april-9th-seminar-dialysis-vertical</guid><dc:creator><![CDATA[Kosali Simon]]></dc:creator><pubDate>Tue, 07 Apr 2026 22:44:47 GMT</pubDate><content:encoded><![CDATA[<p>This Thursday we welcome Ryan McDevitt to the workshop. Dr. McDevitt works at the intersection of industrial organization and health care markets.</p><p>(see  below for the full history of our workshop)</p><div class="digest-post-embed" data-attrs="{&quot;nodeId&quot;:&quot;6487cf35-2db8-48ad-844f-ea298180066b&quot;,&quot;caption&quot;:&quot;A look back across semesters, and what&#8217;s coming next&quot;,&quot;cta&quot;:&quot;Read full story&quot;,&quot;showBylines&quot;:true,&quot;size&quot;:&quot;lg&quot;,&quot;isEditorNode&quot;:true,&quot;title&quot;:&quot;O&#8217;Neill School Health Policy Workshop: 15+ years and going, and why we&#8217;re starting to write it down&quot;,&quot;publishedBylines&quot;:[{&quot;id&quot;:248445992,&quot;name&quot;:&quot;Kosali Simon&quot;,&quot;bio&quot;:&quot;Faculty, IU O'Neill School. Health policy researcher using large-scale data. Writes from the perspective of someone who both produces research and builds institutional support for research data use.&quot;,&quot;photo_url&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/0e0169b6-da97-4840-a542-076f27e781e8_144x144.png&quot;,&quot;is_guest&quot;:false,&quot;bestseller_tier&quot;:null}],&quot;post_date&quot;:&quot;2026-04-07T19:50:07.671Z&quot;,&quot;cover_image&quot;:&quot;https://substackcdn.com/image/fetch/$s_!lwVm!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2d0f7e29-cf90-4291-ba75-7354e85a27de_2844x1124.png&quot;,&quot;cover_image_alt&quot;:null,&quot;canonical_url&quot;:&quot;https://franklythecounterfactual.substack.com/p/oneill-school-health-policy-workshop&quot;,&quot;section_name&quot;:&quot;O'Neill Health Policy Workshop&quot;,&quot;video_upload_id&quot;:null,&quot;id&quot;:193504420,&quot;type&quot;:&quot;newsletter&quot;,&quot;reaction_count&quot;:0,&quot;comment_count&quot;:0,&quot;publication_id&quot;:8412568,&quot;publication_name&quot;:&quot;Frankly, the counterfactual was worse&quot;,&quot;publication_logo_url&quot;:&quot;&quot;,&quot;belowTheFold&quot;:false,&quot;youtube_url&quot;:null,&quot;show_links&quot;:null,&quot;feed_url&quot;:null}"></div><p><strong>This week: </strong></p><p><strong>Title</strong>: Profit Sharing and Patient Steering: Foreclosure from Vertical Ties in Dialysis</p><p><strong>Abstract</strong>: Health care markets have consolidated substantially over the past three decades following increases in both horizontal and vertical integration. We find that vertical ties in dialysis, the most concentrated U.S. health care sector, have larger economic effects than horizontal combinations: joint ventures increase patient counts much more than acquisitions do, with physicians steering patients to facilities where they have an ownership stake or serve as a highly compensated medical director. Joint ventures have no discernible effect on health outcomes or spending but lead to foreclosure, as markets with more patients treated at JV facilities have a significantly lower likelihood of rivals entering over the next five years compared to no impact from non-JV facilities.</p><p><strong>Bio</strong>: Ryan C. McDevitt is a Professor of Economics at Washington University&#8217;s Olin School of Business and School of Public Health as well as a Research Associate at the National Bureau of Economic Research. Ryan previously held academic positions at Kellogg, Booth, Fuqua, and Simon along with non-academic positions at Morgan Stanley and Amazon. Ryan currently serves as editor of the Journal of Industrial Economics and on the American Society of Nephrology&#8217;s Excellence in Patient Care committee. Ryan was named a &#8220;Top 40 Under 40&#8221; business school professor by Poets &amp; Quants in 2017 and has won numerous teaching awards for his courses in economics, strategy, and econometrics. His work has been published in the American Economic Review, Journal of Political Economy, Quarterly Journal of Economics, and Review of Economic Studies, and has been funded by the National Science Foundation and National Bureau of Economic Research.</p><p>Come ready to think about market structure.</p><p><em>Thursday, April 9 &#183; 9:30-11:00am &#183; SPEA A225 and Zoom (contact us if interested)</em></p>]]></content:encoded></item><item><title><![CDATA[O’Neill School Health Policy Workshop: 15+ years and going, and why we’re starting to write it down]]></title><description><![CDATA[INDIANA UNIVERSITY HEALTH POLICY WORKSHOP]]></description><link>https://franklythecounterfactual.substack.com/p/oneill-school-health-policy-workshop</link><guid isPermaLink="false">https://franklythecounterfactual.substack.com/p/oneill-school-health-policy-workshop</guid><dc:creator><![CDATA[Kosali Simon]]></dc:creator><pubDate>Tue, 07 Apr 2026 19:50:07 GMT</pubDate><enclosure 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stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p></p><p><em>A look back across semesters, and what&#8217;s coming next</em></p><p>Kosali Simon &#183; April 2026 &#183; Indiana University O&#8217;Neill School</p><p>For over 15 years, many interesting health economics research papers have been presented in a room in Bloomington, Indiana, and then, mostly, vanished into the ether. No newsletter. No recap. No record that the conversation ever happened.</p><p>That changes now -- at least a little.</p><p>The O&#8217;Neill School Health Policy Workshop has been running since 2011. Most weeks during the semester, researchers from across the country -- and from right here at Indiana University -- gather at 9:30am to discuss work in progress. The topics have ranged widely: organ allocation, opioid prescribing, Medicaid policy, lead exposure, health insurance markets, physician labor markets, and much more.</p><p>This Substack is a modest attempt to share that work more widely. Each week we&#8217;ll post a preview of the upcoming speaker and their research. And we&#8217;ll start here, with a look back across all the semesters we have on record.</p><p><strong>SPRING 2026 (IN PROGRESS)</strong></p><p><strong>Alyssa Bilinski</strong> Assistant Professor, Health Services, Policy &amp; Practice and Biostatistics &#183; Brown University<em> &#8220;Test-Driven Development: A Framework for Incorporating Large Language Models in Research&#8221;</em></p><p><strong>Riley League</strong> Assistant Professor of Finance &#183; University of Illinois Urbana-Champaign<em> &#8220;Fragmented Insurance and Billing Frictions: Understanding Denied Health Insurance Claims&#8221;</em></p><p><strong>Guangqing Chi</strong> Provost Professor, Department of Geography &#183; Indiana University<em> &#8220;From Data to Impact: A Community-Driven Convergence Approach to Global Environmental and Health Challenges&#8221;</em></p><p><strong>Elizabeth Ananat</strong> Mallya Professor of Women and Economics &#183; Barnard College</p><p><strong>Tarik Yuce</strong> Assistant Professor of Surgery &#183; Indiana University School of Medicine<em> &#8220;GLP-1 Agonists, Bariatric Surgery, and the Road Toward an Integrated Model of Obesity Treatment&#8221;</em></p><p><strong>Andrew Olenski</strong> Assistant Professor &#183; Lehigh University<em> &#8220;Predictably Unpredictable Inspections&#8221;</em></p><p><strong>Ryan McDevitt</strong> Professor of Economics &#183; Washington University in St. Louis<em> &#8220;Profit Sharing and Patient Steering: Foreclosure from Vertical Ties in Dialysis&#8221;</em></p><p><strong>Molly Schnell</strong> Assistant Professor &#183; Northwestern University<em> &#8220;Selection into Medicine&#8221;</em></p><p><strong>Joanne Constantin</strong> Assistant Professor &#183; SUNY Downstate Health Sciences University<em> &#8220;Medicaid Expansion, Structural Racism, and Maternal Mortality: Preconception Coverage as an Equity Pathway&#8221;</em></p><p><strong>FALL 2025</strong></p><p><strong>Ben Chartock</strong> Assistant Professor &#183; Bentley University<em> &#8220;Arbitration and Strategic Zero Bidding in Insurer-Doctor Disputes&#8221;</em></p><p><strong>Kurt Lavetti</strong> Associate Professor &#183; The Ohio State University<em> &#8220;The Earnings Incidence of Employer-Sponsored Health Insurance&#8221;</em></p><p><strong>Michael Richards</strong> Professor; Director, Sloan Program in Health Administration &#183; Cornell University<em> &#8220;Stress Relief? Externalities from Specialty Hospital Entry&#8221;</em></p><p><strong>Michelle Marcus</strong> Assistant Professor of Economics &#183; Vanderbilt University<em> &#8220;Burying the Lead: Effects of Public Lead Service Line Replacements on Blood Lead Levels and Property Values&#8221;</em></p><p><strong>Joel Adler</strong> UT Austin Dell School of Medicine<em> &#8220;Out of Sequence Organ Allocation in Kidney Transplantation: Trade-offs, Transparency, and Guardrails&#8221;</em></p><p><strong>Mark Unruh</strong> Associate Professor of Population Health Sciences &#183; Cornell University<em> &#8220;Nursing Home Ownership and Quality&#8221;</em></p><p><strong>Katie Ross-Driscoll</strong> Assistant Professor of Surgery &#183; Indiana University School of Medicine<em> &#8220;Unintended Consequences of Transplant Performance Metrics: Impacts on Access and Equity&#8221;</em></p><p><strong>Rebecca McNally Keehn</strong> Associate Professor of Pediatrics &#183; IU School of Medicine<em> &#8220;Health Services Innovations to Enhance Access and Equity in Early Autism Diagnosis&#8221;</em></p><p><strong>Lady Ikeya</strong> PhD student, Public Affairs &#183; Indiana University<em> &#8220;Balancing the Bottom Line: Personnel Costs and Input Choices in Nursing Homes&#8221;</em></p><p><strong>SUMMER 2025</strong></p><p><strong>Pauline Mourot</strong> Assistant Professor &#183; Boston University<em> &#8220;Should Top Surgeons Practice at Top Hospitals? Sorting and Complementarities in Healthcare&#8221;</em></p><p><strong>Xi Chen</strong> Associate Professor of Public Health &#183; Yale University<em> &#8220;How Do Health Care Use, Spending, and Patient Outcomes Respond to a Timely Dementia Diagnosis?&#8221;</em></p><p><strong>Mallory Dreyer</strong><em> &#8220;The Impact of Fiscal Policies to Promote Healthy Diets on Birth Outcomes: Evidence from the Navajo Nation&#8221;</em></p><p><strong>Jennifer Mangano</strong> Doctoral Candidate, Economics &#183; Indiana University<em> &#8220;Measuring Infant Mortality Using Synthetic Survival Curves&#8221;</em></p><p><strong>SPRING 2025</strong></p><p><strong>Adam Wilk</strong> Associate Professor of Surgery &#183; Indiana University School of Medicine<em> &#8220;Medicare Advantage and Early Transplant Access in Underserved Communities&#8221;</em></p><p><strong>Antonios Koumpias</strong> Associate Professor of Economics &#183; University of Michigan Dearborn<em> &#8220;Association of Retail Health Clinic Market Presence with Medical Appointment Wait Times, 2014-2019&#8221;</em></p><p><strong>Matthew Nesvet</strong> Postdoc, IU Center for Aging Research, Regenstrief Institute</p><p><strong>Myles Wagner</strong> Assistant Professor &#183; Ohio State University<em> &#8220;How Can Regulating Health Insurance Design Address Market Failures?&#8221;</em></p><p><strong>Julian Reif</strong> Associate Professor of Finance &amp; Academic Director of Data Science &#183; UIUC<em> &#8220;The Long-run Effect of Air Pollution on Survival&#8221;</em></p><p><strong>Michael Alexeev</strong> Professor of Economics &#183; Indiana University Bloomington<em> &#8220;Ownership, Asymmetric Information, and Quality of Care for the Elderly: Evidence from US Nursing Homes During the COVID-19 Pandemic&#8221;</em></p><p><strong>Ying Shi</strong> Assistant Professor of Public Administration and International Affairs &#183; Syracuse University<em> &#8220;The Consequences of Mobile Phone Restrictions in Schools&#8221;</em></p><p><strong>Lala Ma</strong> Carl F. Pollard Associate Professor of Health Economics &#183; University of Kentucky<em> &#8220;Racial Dynamics of Federal Property Buyouts in Flood-Prone Areas&#8221;</em></p><p><strong>Zarek Brot-Goldberg</strong> Assistant Professor &#183; University of Chicago Harris School<em> &#8220;Privatizing Government-Sponsored Health Insurance: Medicare Advantage vs. Traditional Medicare&#8221;</em></p><p><strong>FALL 2024</strong></p><p><strong>Danae Hernandez-Cortes</strong> Assistant Professor &#183; School for the Future of Innovation in Society and School of Sustainability, Arizona State University</p><p><strong>Joshua Vest</strong> Professor, Interim Associate Dean for Research &#183; IU Indianapolis Fairbanks School of Public Health<em> &#8220;Comparison of Methods to Measure Health-related Social Needs&#8221;</em></p><p><strong>Parker Rogers</strong> Assistant Professor, Business Economics and Public Policy &#183; Kelley School, Indiana University<em> &#8220;Regulating the Innovators&#8221;</em></p><p><strong>Aparna Soni</strong> Assistant Professor &#183; IU Fairbanks School of Public Health<em> &#8220;Does Expanding Medicaid Eligibility for Children Reduce Racial Disparities in Later-Life Labor Market Outcomes?&#8221;</em></p><p><strong>Adam Soliman</strong> Assistant Professor &#183; Clemson University<em> &#8220;Supply-Side Drivers of the Illicit Opioid Epidemic&#8221;</em></p><p><strong>Kelsey Drewry</strong> Assistant Professor of Surgery &#183; Indiana University School of Medicine<em> &#8220;Estimating the Impact of a Mandatory Medicare Alternative Payment Model on Racial, Ethnic, and Socioeconomic Disparities in Access to Kidney Transplantation&#8221;</em></p><p><strong>Momotazur Rahman</strong> Associate Professor of Health Services, Policy and Practice &#183; Brown University<em> &#8220;The Effect of Institutionalized Special Needs Plans (I-SNP) on Hospitalization Among Nursing Home Residents&#8221;</em></p><p><strong>Matt Aalsma</strong> Indiana University<em> &#8220;Partnering with Indiana Communities to Implement Data Driven Overdose Prevention&#8221;</em></p><p><strong>Leila Agha</strong> Harvard University<em> &#8220;Productivity after Childbirth: Evidence from Physicians&#8221;</em></p><p><strong>SUMMER 2024</strong></p><p><strong>Marylis Fantoni</strong> PhD Candidate &#183; O&#8217;Neill School, Indiana University<em> &#8220;Research Design: Encouraging Domestic Violence Reporting by Decreasing Psychological Cost&#8221;</em></p><p><strong>Dennis Vera</strong> PhD Candidate &#183; Indiana University<em> &#8220;Extreme Heat Impacts on Mortalities in the United States&#8221;</em></p><p><strong>Dario Salcedo Monroy</strong> PhD Candidate &#183; O&#8217;Neill School, Indiana University<em> &#8220;Land Restitution, Wellbeing and Mental Health Conditions in Colombia&#8221;</em></p><p><strong>SPRING 2024</strong></p><p><strong>Jia Xiang</strong> Assistant Professor, Business Economics and Public Policy &#183; Kelley School, Indiana University<em> &#8220;Physicians as Persuaders: Evidence from Hospitals in China&#8221;</em></p><p><strong>Kathleen Unroe</strong> Associate Professor of Medicine &#183; Indiana University School of Medicine<em> &#8220;What&#8217;s Next for Long Term Care: Opportunities in Research, Policy and Clinical Practice&#8221;</em></p><p><strong>Alden Cheng</strong> Postdoctoral Research Associate &#183; University of Illinois Urbana-Champaign<em> &#8220;Selection on Unobservables in Discrete Choice Models&#8221;</em></p><p><strong>Victoria Barone</strong> Assistant Professor, Department of Economics &#183; University of Notre Dame<em> &#8220;Democracy and The Opioid Epidemic&#8221;</em></p><p><strong>Karl Bilimoria</strong> Director, Surgical Outcomes and Quality Improvement Center &#183; Indiana University School of Medicine<em> &#8220;Are The Stars Aligned? Improving CMS Public Reporting and Pay-for-Performance Programs&#8221;</em></p><p><strong>Terence Cheng</strong> Research Scientist, Department of Global Health and Population &#183; Harvard T.H. Chan School of Public Health<em> &#8220;Economics of Internet Health Care: Insights from China&#8217;s Online Telemedicine Marketplace&#8221;</em></p><p><strong>Ricky Camplain</strong> Assistant Professor &#183; IU School of Public Health<em> &#8220;Holistic Approaches to Indigenous Health and Wellbeing while Incarcerated&#8221;</em></p><p><strong>Lauren Schmitz</strong> Assistant Professor &#183; La Follette School of Public Affairs, University of Wisconsin<em> &#8220;Leveraging Epigenetic Data to Examine Lifecourse Disparities in Aging&#8221;</em></p><p><strong>Lindsay Allen</strong> Assistant Professor of Emergency Medicine &#183; Northwestern University<em> &#8220;Substance Use in Medicaid Enrollees&#8221;</em></p><p><strong>Matt Webb</strong> Associate Professor, Department of Economics &#183; Carleton University<em> &#8220;Difference-in-Differences with Unpoolable Data&#8221;</em></p><p><strong>Dario Salcedo</strong> PhD Candidate &#183; O&#8217;Neill School, Indiana University<em> &#8220;Land Restitution, Wellbeing and Mental Health Conditions in Colombia&#8221;</em></p><p><strong>FALL 2022</strong></p><p><strong>Ashley Bradford</strong><em> &#8220;Nuisance Ordinances and Overdose Mortality&#8221;</em></p><p><strong>Samuel Mann</strong> Vanderbilt University<em> &#8220;Employment Non-Discrimination Acts and Mental Health&#8221;</em></p><p><strong>Jamila Michener</strong> Cornell University<em> &#8220;Pandemic Medicaid: A Ground-up Perspective&#8221;</em></p><p><strong>Ben Harrell</strong> Vanderbilt University<em> &#8220;Conversion Therapy Bans, Suicidality, and Mental Health&#8221;</em></p><p><strong>Benjamin Chartock</strong> Bentley University<em> &#8220;Quality Disclosure, Demand, and Congestion: Evidence from Physician Ratings&#8221;</em></p><p><strong>Steve Cicala</strong> Tufts University<em> &#8220;Adverse Selection as a Policy Instrument: Unraveling Climate Change&#8221;</em></p><p><strong>Shooshan Danagoulian</strong> Wayne State University<em> &#8220;Seasonal Allergy Blues: Is Mental Health Worse on High Pollen Days?&#8221;</em></p><p><strong>Vini Singh</strong> UMass Amherst<em> &#8220;Power Dynamics in the Doctor-Patient Relationship&#8221;</em></p><p><strong>Barbara Andraka-Christou</strong> University of Central Florida<em> &#8220;Federal Policies Regulating Medications for Opioid Use Disorder: A Problematic Case of Path Dependence&#8221;</em></p><p><strong>SPRING 2022</strong></p><p><strong>Jonathan Zhang</strong> McMaster University</p><p><strong>Monica Garcia Perez</strong> St. Cloud State University</p><p><strong>Dorainne Green</strong> IUB Psychological and Brain Sciences<em> &#8220;Cuing Disparities: Exploring the Antecedents and Consequences of Group-Based Social Stressors on Academic Achievement&#8221;</em></p><p><strong>Tom Dee</strong> Stanford University</p><p><strong>Joanne Spetz</strong> UCSF</p><p><strong>Colleen Barry</strong> Dean, Cornell Brooks School of Public Policy</p><p><strong>FALL 2021</strong></p><p><strong>Dan Sacks</strong> Kelley School, Indiana University<em> &#8220;Field of Study, Gender, and Grades&#8221;</em></p><p><strong>Sumedha Gupta</strong> IUPUI Economics<em> &#8220;Social Isolation and Dementia/AD Diagnosis Among the Elderly During COVID-19&#8221;</em></p><p><strong>Laura Montenovo</strong> O&#8217;Neill School, Indiana University<em> &#8220;The Effects of Weakening Employment Protection Legislation on Job Flows: Evidence from an Italian Reform&#8221;</em></p><p><strong>Justin Blackburn</strong> IUPUI Fairbanks School of Public Health<em> &#8220;Medicaid Enrollment and Health Service Utilization Among Justice-Involved Adults Released from Indiana State Prisons&#8221;</em></p><p><strong>Sebastian Fleitas</strong> KU Leuven<em> &#8220;Quality Based Prices and Multidimensional Quality: Evidence from English Family Doctors&#8221;</em></p><p><strong>Salama Freed</strong> Duke University<em> &#8220;How Did the COVID-19 Health Care Delivery Disruption Affect Medication Use Among People with Chronic Conditions?&#8221;</em></p><p><strong>Adrienne Sabety</strong> University of Notre Dame<em> &#8220;Natural Disasters and Elective Medical Services: The Consequences of Forgone Health Care&#8221;</em></p><p><strong>Zirui Song</strong> Harvard Medical School<em> &#8220;Peer Effects and Health Care Consumption: Evidence from Spousal Health Shocks&#8221;</em></p><p><strong>Tamar Oostrom</strong> Ohio State University<em> &#8220;Deaths of Despair and the Decline of American Religion&#8221;</em></p><p><strong>Alberto Ortega</strong> O&#8217;Neill School, Indiana University<em> &#8220;What Happens After a Title IX Investigation?&#8221;</em></p><p><strong>SPRING 2021</strong></p><p><strong>Angelica Meinhofer</strong> Cornell University<em> &#8220;Marijuana Liberalization Policies and Perinatal Health&#8221;</em></p><p><strong>Lala Ma</strong> University of Kentucky<em> &#8220;Drinking Water, Fracking, and Infant Health&#8221;</em></p><p><strong>Elaine Hill</strong> University of Rochester<em> &#8220;National COVID Cohort Collaborative (N3C)&#8221;</em></p><p><strong>Yaa Owusua Akosa Antwi</strong> Johns Hopkins University</p><p><strong>Dhaval Dave</strong> Bentley University</p><p><strong>Dan Sacks</strong> Indiana University<em> &#8220;Opioids and Employment: A Dynamic Approach&#8221;</em></p><p><strong>Isaac Swensen</strong> Montana State University</p><p><strong>D. Mark Anderson</strong> Montana State University</p><p><strong>Brady Post</strong> Northeastern University</p><p><strong>FALL 2020</strong></p><p><strong>Patrick Hibbard</strong> O&#8217;Neill School, Indiana University<em> &#8220;Problem Solving Courts and Crime Rates&#8221;</em></p><p><strong>Sabrina Young</strong> USDA<em> &#8220;The Effect of Food Insecurity on the Mental and Cognitive Health of the Elderly&#8221;</em></p><p><strong>Catherine Maclean</strong> Temple University<em> &#8220;Recreational Marijuana and Workers&#8217; Compensation&#8221;</em></p><p><strong>Sarah Hamersma</strong> Syracuse University<em> &#8220;Does SNAP Increase Young Adults&#8217; Engagement in Higher Education?&#8221;</em></p><p><strong>Keisha Solomon</strong> Johns Hopkins<em> &#8220;State Mental Health Parity Laws and Educational Outcomes for College Students&#8221;</em></p><p><strong>Monica Deza</strong> CUNY<em> &#8220;The Intergenerational Effects of the Vietnam Draft on Risky Behaviors&#8221;</em></p><p><strong>Chris Ruhm</strong> University of Virginia<em> &#8220;Mortality Trends Across Education Quartiles&#8221;</em></p><p><strong>Nicholas Wright</strong> Florida Gulf Coast University<em> &#8220;Focus as You Drive and Arrive Alive: The Impact of Handheld Laws on Traffic Fatalities&#8221;</em></p><p><strong>Sih-Ting Cai</strong> University of Pittsburgh<em> &#8220;Zero Premium Insurance Plans: Evidence from Colorado&#8221;</em></p><p><strong>Alberto Ortega</strong> O&#8217;Neill School, Indiana University<em> &#8220;Police Killings: Implications from Court-Ordered Hiring Quotas&#8221;</em></p><p><strong>SPRING 2020</strong></p><p><strong>Sebastian Tello-Trillo</strong> University of Virginia<em> &#8220;Losing Public Health Insurance: TennCare Reform and Personal Financial Distress&#8221;</em></p><p><strong>Shooshan Danagoulian</strong> Wayne State University<em> &#8220;Office Visits Preventing Emergency Room Visits: Evidence from the Flint Water Switch&#8221;</em></p><p><strong>Ithai Lurie</strong> US Department of Treasury<em> &#8220;Health Insurance and Mortality: Experimental Evidence from Taxpayer Outreach&#8221;</em></p><p><strong>Sara Markowitz</strong> Emory University<em> &#8220;The Effects of State Scope of Practice Laws on the Labor Supply of Advanced Practice Registered Nurses&#8221;</em></p><p><strong>Justin Blackburn</strong> IUPUI School of Public Health<em> &#8220;Using Health Information Exchange Data to Assess Disenrollment in Medicaid&#8221;</em></p><p><strong>Joanne Spetz</strong> UCSF<em> &#8220;Healthcare Workforce&#8221;</em></p><p><strong>FALL 2019</strong></p><p><strong>Ludovica Gazze</strong> University of Chicago<em> &#8220;How Do Governments Identify Environmental Hazards? Targeting Lead Screening in Illinois&#8221;</em></p><p><strong>Lauren Jones</strong> Ohio State University<em> &#8220;The Long-term Effect of the Earned Income Tax Credit on Physical and Mental Health&#8221;</em></p><p><strong>Jason Lindo</strong> Texas A&amp;M University<em> &#8220;The Power of the IUD: Effects of Expanding Access to Contraception through Title X Clinics&#8221;</em></p><p><strong>Molly Schnell</strong> Northwestern University<em> &#8220;The Impacts of Physician Payments on Patient Access, Use, and Health&#8221;</em></p><p><strong>Pinar Karaca-Mandic</strong> University of Minnesota<em> &#8220;Medical Reversals: Understanding the Process of De-adoption of Ineffective Treatment&#8221;</em></p><p><strong>Sumedha Gupta</strong> IUPUI<em> &#8220;Spillover Effects of Regulating Opioid Substitutes&#8221;</em></p><p><strong>Jonathan Cantor</strong> RAND<em> &#8220;Opioid Disorder Treatment Facilities&#8221;</em></p><p><strong>Felipe Lozano Rojas</strong> O&#8217;Neill School, Indiana University<em> &#8220;Evaluation of Soda Tax Policies&#8221;</em></p><p><strong>SPRING 2019</strong></p><p><strong>Brian Kaskie</strong> University of Iowa</p><p><strong>Aparna Soni</strong> Indiana University</p><p><strong>Tim Moore</strong> Purdue University</p><p><strong>Seth Freedman</strong> Indiana University</p><p><strong>Laura Wherry</strong> UCLA</p><p><strong>Briggs DePew</strong> Louisiana State University</p><p><strong>FALL 2018</strong></p><p><strong>Dan Sacks</strong> Indiana University<em> &#8220;Retirement Notches in Federal Employment&#8221;</em></p><p><strong>Haizhen Lin</strong> Indiana University<em> &#8220;Opioid Epidemic Among the Insured Working Population&#8221;</em></p><p><strong>Vivek Astvansh</strong> Kelley School, Indiana University<em> &#8220;Medical Device Recalls: Does Choice of Communication Medium Impact Firm&#8217;s Valuation?&#8221;</em></p><p><strong>SPRING 2018</strong></p><p><strong>Kurt Lavetti</strong> Ohio State University<em> &#8220;The Persistence of Health Status and the Ex Ante Value of Public Health Insurance&#8221;</em></p><p><strong>David Hagman</strong> PhD Candidate, Carnegie Mellon / Penn<em> &#8220;Behavioral Economics and Experimental Research in Health and Finance&#8221;</em></p><p><strong>Tony Lo Sasso</strong> University of Illinois at Chicago<em> &#8220;Central Planning and Market Based Reforms: Evidence from Ohio&#8217;s Long Term Care Market&#8221;</em></p><p><strong>Dan Black</strong> Harris School, University of Chicago<em> &#8220;Simple Tests for Selection: Learning More From Instrumental Variables&#8221;</em></p><p><strong>David Molitor</strong> University of Illinois<em> &#8220;Long-Run Health Dynamics in the Wake of Disaster: Evidence from Hurricane Katrina&#8221;</em></p><p><strong>Sumedha Gupta</strong> IUPUI<em> &#8220;Fight Against Opioid Misuse: Lessons from Kentucky&#8221;</em></p><p><strong>Andrew Friedson</strong> UC Denver<em> &#8220;The Affordable Care Act and Ambulance Response Time&#8221;</em></p><p><strong>Sunita Desai</strong> NYU Wagner School<em> &#8220;The 340B Drug Pricing Program and the Provision of Uncompensated Care&#8221;</em></p><p><strong>FALL 2017</strong></p><p><strong>Dan Sacks</strong> Indiana University<em> &#8220;Did Defunding the Risk Corridors Program Kill Obamacare?&#8221;</em></p><p><strong>Brian D&#8217;Onofrio</strong> IU Department of Psychology<em> &#8220;Translational Psychiatric Epidemiology: What&#8217;s Happening Down the Street?&#8221;</em></p><p><strong>Coleman Drake</strong> University of Minnesota<em> &#8220;Consumer Valuation of Physician Network Size in the 2017 Covered California Health Insurance Marketplace&#8221;</em></p><p><strong>Biniyam Yemane</strong> Indiana University<em> &#8220;The Education-Health Gradient, Pathways, and Spillovers: New Evidence from a Natural Experiment&#8221;</em></p><p><strong>SPRING 2017</strong></p><p><strong>Seth Freedman</strong> Indiana University<em> &#8220;Observational Studies of the Effect of Medicaid on Health Outcomes: Illustrations of Bias&#8221;</em></p><p><strong>Engy Ziedan</strong> University of Illinois Chicago<em> &#8220;The Intended and Unintended Consequences of the Hospital Readmission Reduction Program&#8221;</em></p><p><strong>Dan Sacks</strong> Indiana University<em> &#8220;Did Defunding the Risk Corridors Kill Obamacare?&#8221;</em></p><p><strong>Alex Hollingsworth</strong> Indiana University<em> &#8220;Using Marijuana Legalization to Learn About Substitution Patterns in Markets for Recreational Psychoactive Substances&#8221;</em></p><p><strong>Vivian Ho</strong> Rice University<em> &#8220;Do Freestanding Emergency Departments Encourage Free-Spending Care?&#8221;</em></p><p><strong>Anita Mukherjee</strong> University of Wisconsin Madison<em> &#8220;Difference-in-Difference Estimates on the Impacts of Opioid Antagonist Legislation&#8221;</em></p><p><strong>INAUGURAL TALK -- MAY 2011</strong></p><p><strong>Craig Garthwaite</strong> Kellogg School, Northwestern University<em> &#8220;The Doctor Might See You Now: The Supply Side Effects of Public Health Insurance Expansions&#8221;</em></p><p>That&#8217;s a lot of research. Hundreds of papers, dozens of institutions, one persistent 9:30am slot -- and counting.</p><p>Going forward, you&#8217;ll get a post each week previewing the upcoming talk. If you work in health economics or health policy -- whether you&#8217;re in Bloomington or not -- we hope you&#8217;ll follow along.</p><p><em>The O&#8217;Neill School Health Policy Workshop meets Thursdays, 9:30-11:00am, SPEA A225 (and via Zoom). Indiana University Bloomington.</em></p><p></p>]]></content:encoded></item></channel></rss>