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.
The Predoctoral Research in Economics Program (PREP) is intended to serve as a bridge between college and graduate school for students interested in empirical economics. The program offers unique research and professional training opportunities at the University of Chicago.
Expanding Discovery in Economics+ (EDE+) brings together a diverse group of early undergraduate students to hone their research abilities and technical skills.
Fernando Alvarez, David Argente, Joyce Chow, and Diana Van Patten
Data centers are the physical infrastructure behind cloud computing, artificial intelligence, and enterprise software. The rapid diffusion of artificial intelligence (AI) is intensifying demand for compute, accelerating investment in data centers, and raising concerns about the local economic and environmental...
We identify a novel behavioral driver of environmental performance. An increase in country-level consumer sentiment leads to sustained reduction in emission intensity over a multiyear horizon. Since consumer sentiment increases investment, productivity, energy efficiency, and stock market returns, a plausible...
We derive the theoretical predictions of diagnostic expectations regarding the transmission of sentiment to investment, employment, income, and consumption under imperfect information. We show and verify that, unlike rational expectations, diagnostic expectations predict short-term overreaction and subsequent reversals particularly in...
Captivating and informative videos on the latest insights and trends as well as the tested stock of knowledge in economics from leaders in academia, policy, business, and the media.
Economists have neglected a key issue for understanding and increasing technological change, in failing to study how talented individuals produce innovations. This paper takes a quantitative approach to this problem. Regression analysis of auction data from 1965-2015 reveals that the age-price profiles of Jackson Pollock and Andy Warhol – the two greatest painters born in the 20th century – closely resemble the age profiles of the two artists derived both from textbooks of art history and from retrospective exhibitions. The agreement of these sources confirms that the auction market assigns the highest prices to the most important art, and examination of the artists’ careers reveals that this art is the most important because it is the most innovative. These results lend strong support to our understanding of creativity at the individual level, with a sharp contrast between the extended experimental innovation of Pollock and the sudden conceptual innovation of Warhol.
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.
The Predoctoral Research in Economics Program (PREP) is intended to serve as a bridge between college and graduate school for students interested in empirical economics. The program offers unique research and professional training opportunities at the University of Chicago.
Expanding Discovery in Economics+ (EDE+) brings together a diverse group of early undergraduate students to hone their research abilities and technical skills.
Fernando Alvarez, David Argente, Joyce Chow, and Diana Van Patten
Data centers are the physical infrastructure behind cloud computing, artificial intelligence, and enterprise software. The rapid diffusion of artificial intelligence (AI) is intensifying demand for compute, accelerating investment in data centers, and raising concerns about the local economic and environmental...
We identify a novel behavioral driver of environmental performance. An increase in country-level consumer sentiment leads to sustained reduction in emission intensity over a multiyear horizon. Since consumer sentiment increases investment, productivity, energy efficiency, and stock market returns, a plausible...
We derive the theoretical predictions of diagnostic expectations regarding the transmission of sentiment to investment, employment, income, and consumption under imperfect information. We show and verify that, unlike rational expectations, diagnostic expectations predict short-term overreaction and subsequent reversals particularly in...
Captivating and informative videos on the latest insights and trends as well as the tested stock of knowledge in economics from leaders in academia, policy, business, and the media.
