National Bureau of Economic Research

Customer support agents using an AI tool to guide their conversations saw a nearly 14 percent increase in productivity, with 35 percent improvements for the lowest skilled and least experienced workers, and zero or small negative effects on the most experienced/most able workers, Erik Brynjolfsson, Danielle Li, and Lindsey R. Raymond report in Generative AI at Work (NBER Working Paper 31161).

Using call data from roughly 5,000 agents working for a Fortune 500 software company, the researchers…

NBER releases Challenges of Globalization in the Measurement of National Accounts, an examination of multinational business activities, including how multinational enterprises arrange their financing and assign ownership of intellectual property to avoid tax and regulatory burdens.

Economists have long recognized that when consuming a good produces externalities, welfare can be raised by imposing corrective taxes. More recently, there has been a growing belief that some goods should be taxed because of internalities — harms that people might impose on themselves due to limited attention, misunderstanding of financial instruments, systematically biased beliefs about themselves such as overconfidence, or lapses of self-control. One of the agendas that we have pursued at the intersection of public economics and behavioral economics is the optimal design of corrective taxes and subsidies to mitigate both externalities and internalities. Relative to externalities, internalities have received much less attention from economists, but they have been a key focus of our work — and,…

The number of adults worldwide who are overweight or obese is rising, with much of the increase driven by developing countries. Famine exposure at early ages is a contributing factor, and it is not clear whether such exposure transmits across generations. In Overweight Grandsons and Grandfathers’ Starvation Exposure (NBER Working Paper 30599), Dora Costa develops novel evidence on this issue by studying the grandchildren of Union Army veterans, some of whom were prisoners of war (POWs).

Prior to July 1863, most POWs in the US Civil War were immediately exchanged. For those in this group who survived to 1900, the average time in captivity was 16 days. Between July 1863 and July 1864 prisoner exchanges stopped; survivors’ time in captivity grew to an average of 231 days. After July 1864, exchanges resumed; time in captivity...

Many older American households approaching retirement age have accumulated little in the way of retirement savings. Over the past two decades, behavioral researchers have explored a variety of potential “nudges” designed to increase retirement savings. Many of these interventions have been shown to have substantial impacts on retirement savings behavior. However, validating, comparing, and selecting from different approaches can be difficult. Existing studies differ in their samples, the characteristics of firms included, study periods, and outcomes, which can alter the impact of policy interventions. In addition, the existing literature has largely not explored the relative cost-effectiveness of the various options.

In How Do Behavioral Approaches to Increase Savings Compare? Evidence from Multiple Interventions in the US Army (NBER RDRC Working Paper NB22-10), researchers Richard Patterson and William Skimmyhorn examine the relative efficacy and cost-effectiveness of four policy options designed...

Startups have more incentive than incumbent firms to engage in potentially disruptive R&D because large, established firms have more to lose from the discovery of new technologies that replace traditional ways of doing things. With no existing operations, startups have nothing to lose and much to gain from disruptive innovation.

In Of Academics and Creative Destruction: Startup Advantage in the Process of Innovation (NBER Working Paper 30362), Julian Kolev, Alexis Haughey, Fiona Murray, and Scott Stern focus on patents that emerged from university-based research ecosystems. Innovative researchers often prefer the creative freedom...