The Becker Friedman Institute for Economics (BFI) serves as a hub for cutting-edge analysis and research across the entire University of Chicago economics community, uniting researchers from the Booth School of Business, the Kenneth C. Griffin Department of Economics, the...
Inspired by our namesakes, Nobel Laureates Gary Becker and Milton Friedman, who believed that economics research could help improve the world, BFI works with the Chicago Economics community to turn its evidence-based research into real-world impact.
EDE is a University of Chicago Summer Institute designed to identify and support talented undergraduate students from a broad range of backgrounds interested in the study of economics.
Maria Angélica Bautista, Juan Sebastián Galán, James Robinson, Rafael F. Torres, and Ragnar Torvik
Political leaders make policy choices which are often hard to explain via institutions. We use the behavior of Colombian paramilitary groups as an environment to study non-institutional sources of variation in how public good provision and violence are combined to...
This paper measures parents’ beliefs about school and peer quality, how information about each affects school choices, and how social interactions mediate these effects. Parents underestimate school quality and overestimate peer quality. Cross-randomized school and peer quality information combined with...
Mesmin Destin, Ivan Hernandez, Ariel Kalil, Marlis Schneider, David Silverman, and Rebecca Ryan
Creating opportunities for people to achieve socioeconomic mobility is a widely shared societal goal. Paradoxically, however, achieving this goal can pose a threat to high-socioeconomic-status (SES) people as they look to maintain their privileged positions in society for both them...
Financial Statement Analysis with Large Language Models
GPT outperforms financial analysts in predicting companies’ earnings changes, especially when analysts struggle, with accuracy comparable to state-of-the-art machine learning models.
Alex G. Kim, Maximilian Muhn, and Valeri V. Nikolaev
Based on BFI Working Paper No. 2024-65, “Financial Statement Analysis with Large Language Models”