Top EWED Posts of 2025

These are notable posts from 2025, roughly presented in descending order, starting with the post that got the most views.

  1. Is there a competitive threat to the NBA?  Mike Makowsky wrote, “… let’s put it this way. Why *wouldn’t* the Saudi Arabian PIF invest $5 billion in creating a rival basketball league?”

2. Perspective: This Stock Correction Fear, Too, Will Pass  In March, Scott Buchanan presented “an optimistic take on the current stock market pullback.”   Indeed, the market came back, despite the tariff doomerism of 2025 Spring.

3. The Middle/Working Class Has Not Been “Hollowed Out” Jeremy Horpedahl, corrector of common myths, corrects a common myth.

4. Montana’s New Property Tax System  Jeremy explains “interesting changes to residential property taxes in Montana.”

5. How Scott Bessent Outfoxed Peter Navarro to Get the 90 Day Tariff Pause from Scott: “As Treasury Secretary, Scott Bessent would be particularly sensitized to the interest rate issue…”

6. Spending on Necessities Has Declined Dramatically in the United States Jeremy reminding us that Americans are richer today.

7. Was the US at Our Richest in the 1890s? If you don’t believe Jeremy, consider one of the American Girl Doll historical books I was just reading to my kid. In our book, a little girl sends a letter to Samantha (the 1904 doll) reporting that both of her parents just died from the flu.

8. The Wild Market of July 8th, 2025 James Bailey on the topic that we are all trying to keep up with this year: “Yesterday the S&P 500 shot up 9% on the news that most of Trump’s new tariffs were paused.”

Special mention to Joey Politano who has been trying to follow the news all year and might go insane according to his Twitter/X.

9. No Tech Workers or No Tech Jobs? I (Joy) wish I had more time to write about the market for tech jobs this year. There is some indication that hiring is slowing. Some people still call it a correction from the Covid tech over-hiring spree. Other people take this as a sign that AI reduces the need for human programmers and otherwise “high-skill” humans, while some refute that claim.

10. Other “I, Pencils”  It was fun for several dozen of us economists when everyone else in the world suddenly re-discovered the value of international exchange.

11. The Best Investments of the 1970s James considers “what were the best investments of the 1970’s?”  Interesting to consider the performance of gold in retrospect considering stagflation.

12. Women Have Always Worked More Than Men: Hours of Work Since 1900 I feel seen.

13. Shocked 2025 is shocking, as Mike pointed out in February.

14. Trump’s Economic Policy Uncertainty Along those lines, Zachary Bartsch examines how people are shocked and confused.

15. Salty SALT in the OBBB Zachary explains. “Economically, the SALT makes it cheaper for individuals to live in high-tax jurisdictions. That’s distortionary.” 

16. Illusions of Illusions of Reasoning I wrote, “evaluating AI reasoning is difficult…”

Reflections: We’ve been doing this for 5 years now, as of August 2025. From the analytics I can see, our posts have been the answer to a stranger’s Google query hundreds of thousands of times. Having been the beneficiary of so many other posts from strangers online, I’m happy about that.

Reminder: You can subscribe to our WordPress site to get posts sent to your email. The widget for putting your email in should be on the right side of your screen on a computer, or you can find it by scrolling to the bottom of the home page on a mobile device. WordPress will let you customize your preferences so that you get emails batched once a week if you prefer that to Every Day.

Based on my crude analytics from WordPress, “traffic” to our site from LLMs is low but increasing. It appears that readers occasionally click over from chatgpt.com or perplexity.ai  What we can’t see is if and when our writing is re-molded as part of an LLM answer without attribution. In one sense, writing online is more important than ever, to feed the beast and help get good quality answers to LLM users. On the other hand, old systems in place like upvotes and view counts that used to motivate people to write for free might crumble in the new world.

From me in 2024: “AI companies have money. Could we be headed toward a world where OpenAI has some paid writers on staff? Replenishing the commons is relatively cheap if done strategically, in relation to the money being raised for AI companies.” 

If anyone knows Mark Zuckerberg, please tell him that I’ll write for a fraction of what he’s paying these new engineers. What if he gave out a writing fellowship on the understanding the person never publishes (else the other bots would scrape it) and just exclusively lets Llama train off of original work?

In our case, anyway, we enjoy writing and learn from the process, so we are looking forward to being here every day.

To find prior year “top post” lists, start with: Updated List of Top Posts for 2024

See New York City for Full Price

I posted See New York City for Free in 2022 and See New York City for Cheap in 2024. In summer 2025, we spent 4 nights in Midtown. I will post general reflections about kids and New York here. Last week, l posted a short itinerary for our half-week in Manhattan with elementary-aged kids, as suggestions for other parents: NYC Family Summer Trip Itinerary

1. Assuming a middle-income family with 1-3 kids, when it comes to travel, I propose Do Less for Preschool. Save money by staying close to home when the kids are under the age of 6. I know people who do international trips with babies, usually because they are visiting family. I have not.

2. A mentor encouraged me to have kids early. One of my objections in 2014 was that I hadn’t traveled the world yet. Everyone I knew was posting selfies in Thailand. How could I have kids if I haven’t even posted from Thailand yet? He told me that you can travel with your kids when they are older. Now it’s 2025. Did that time go by fast? It’s a blur at this point. I remember the time when I read in a book that your kids will potty train themselves if you let them walk around with no diaper. When I tried that, my folks just went on the floor. That’s the stage of life when you might want to put unnecessary travel on hold.

3. Someone had told us that the NYC Subway is not safe and we should not take our kids on it. We used the Subway every day and it was fine. I saw one young man jump the turnstile. The elevator smelled bad. One night when I was checking routes, I noticed a warning on the map reading, “trains are delayed while we request NYPD for someone being disruptive on train…” So, people who rely on the Subway at all times might still have some complaints.

We enjoyed peace and safety in touristy areas between the hours of 8am and 9pm. Were we the beneficiaries of the crime decrease? I saw a bus ad celebrating the decrease in murders in NYC. Before I left Birmingham, Mayor Woodfin announce a big decrease in murders. The trend seems to be real.

4. The Observation Deck of the Empire State Building trip is almost more meta than the MOMA. You are inside the building looking at pictures of the outside of the building. You are posting pictures of yourself next to 50-year-old pictures of the outside of the building. People appear to go to the real thing in order to poast.

You can just do things, as they say, or at least you could in 1930.

Both kids voted that the Empire State Building was more “wow” than the MOMA. Maybe they like constructing more than deconstructing.

5. I vote the Museum of Modern Art (MOMA) as more “wow” because the permanent installations include many famous pieces including Starry Night by Van Gogh.

I had booked a day at MOMA without knowing exactly what was inside. My kids got to see me going around saying things like, “Wow. They have a real Picasso!” Instead of acting as a docent through a world I’ve already explored, my kids get to discover a lot along with me. We discussed what counts as “art” and “how did that get on the wall of a museum?”

6. If you are going to Lower Manhattan to see the New York Stock Exchange and the World Trade Center, don’t miss a free tour of Trinity Church. (Hamilton’s tomb is in the churchyard.) It is an example of progress to see the cathedral dwarfed by the surrounding skyscrapers considering that: “With its 281-foot steeple, the third Trinity Church became the tallest building in the United States.”

Here at EWED, Jeremy has often pointed out that people are richer today than in the past. The maligned Boomers would have seen a shorter New York skyline as children. Many of the supertall glass structures you see today were built after 2001, meaning it’s Gen Z who gets to live with them. (I learned that on our harbor boat tour.)

7. The 7-year-old got Lion King and the M&M store in Times Square. The tour of the United Nations headquarters was for the older people. The 10yo and I learned a lot from an excellent tour guide.

The 7yo had to be carried. She did not understand why they were calling “an emergency meeting on Syria.” The next day I asked her what she remembered from touring the UN. She sincerely replied, “What United Nations?” If you are wondering if she remembers anything from the trip, the answer is yes. The Empire State Building and the Chrysler building, among many other things, are newly part of the family vocabulary.

After the UN tour, I took the family back across 1st Avenue to see the Isaiah Wall. Scaffolding blocked our view, which is not encouraging for the hope of peace. The idea is that: “They shall beat their swords into plowshares, and their spears into pruning hooks; nation shall not lift up sword against nation, neither shall they learn war any more.”

Imagine a child named Johnny trying to form a model of the universe from the journey I set up for my kids this summer. In New York, Johnny embarked on a cultural safari that began at the MoMA, where he stood wide-eyed before melted clocks and soup cans, absorbing the idea that the world might be an absurd, fragmented collage. Then came The Lion King as a dazzling counterpoint, suggesting that the world is imbued with cosmic purpose. Every giraffe, ghost-dad, and blade of savannah grass existed in service of a divine, eternal monarchy. Finally, at the United Nations, he was led past flags and translation booths, where no one bowed to anyone and the world’s contradictions were negotiated over coffee. By the end of the day, Johnny wondered: is meaning a myth, a fact taught by the Spirit, or a matter of committee?

I noticed that they serve Starbucks coffee in the basement of the UN and in the Empire State Building. As long as we can get coffee before and dinner after, no one seems to care if the message is coherent.

NYC Family Summer Trip Itinerary

This is a condensed list of what we did with elementary-aged kids for three fun days in Manhattan in July. 

Like a camping trip, NYC with kids depends on the weather. In good walking weather you can occupy many hours exploring free outdoor attractions. In bad weather, you might feel the need to constantly buy admission tickets, retail, taxis and sit-down restaurant meals.

Our hotel was a 5-minute walk from Grand Central Station. We had a good view from our room on the 28th floor. We could even look down on an interesting active construction site. When traveling with kids, or any group larger than a couple, you’ll probably be stuck in the hotel sometimes, so paying extra for a good view might be worth it.

In the hotel lounge, adults could drink a free glass of wine and listen to a guy playing calm piano songs from memory like “My Heart Will Go On.” When my ten-year-old (10yo) asked for “Seven Nation Army” by The White Stripes, the request was denied. 

Tuesday

We walked to The Empire State Building. Passing the Public Library was a highlight although it was not open yet. I had booked entry tickets to the Empire State building online months ahead of time for a 9:30am time on a Tuesday. We spent no time waiting in line.

Next, we took the Subway to the Museum of Modern Art (MOMA). I had reserved tickets for the day. If your kids need a break from quietly appreciating art on the wall, there is a garden courtyard and kid’s craft area.  

It was hot but we were lucky to not be in the middle of a genuine heat wave. We got to-go food from a shop and walked north to Central Park for a picnic on rocks in the shade. Playgrounds and fun statues provide points of interest for kids.

We walked up to the Chess pavilion where my kids dropped in on chess games with friendly strangers (a nice man provided the pieces). You could bring your own chess or checkers pieces if you want to guarantee a game.

Note: Even though many places claim to have bag polices online, you can almost always get a regular sized backpack and/or metal water bottle through security.

Wednesday

This might sound like a planned itinerary, but the only thing we locked in ahead of time for Wednesday was an afternoon Broadway show. By the time we got back to our hotel at night, my phone had counted over 14,000 steps for the day. Our first stop was Clinton Castle on the southern edge of the island. Benefits to children include bathrooms and a museum display of how Manhattan was expanded through land reclamation. I’m not including all the places we stopped to eat in this blog but we especially liked discovering Liberty Bagels.

We saw the bull statue and the New York Stock Exchange (from the outside). A great stop in Lower Manhattan is a free self-guided tour of Trinity Church. We walked to the 9/11 memorial and then back to the subway so we could rest in our hotel during the hottest part of the day.

Lion King on Broadway was fun (and expensive). Afterwards, we were in Time Square, and it was finally time to do what my kids had been talking about all year: return to the M&M store. Kids love the M&M store.  

Then we walked to Hell’s Kitchen for dinner. We went back east to Rockefeller Center and bought books for the kids at McNally Jackson. From there, with a “we can make it” attitude, we walked back to the hotel in the dark. This is where the “safe streets” matter as much as the weather.

Thursday

This morning had not been planned ahead of time, so we spent some of our time figuring things out. We walked to the United Nations headquarters. I was able to get visitor passes and a guided tour. We had a great guide who explained the building and the aims of the UN for 45 minutes. I learned a lot and my 10yo was engaged.

Should you take your children on a tour of the UN? I had to carry my 7yo most of the time. The next day, I asked her what she remembered. She sincerely replied, “What United Nations?” If you don’t think your younger child will be outright disruptive, then you might take a younger kid along with an older kid who can appreciate it.

We had an appointment to enter the USS Intrepid Museum at 2:30. We didn’t make it until 3:30 and it closes at 5pm. The place deserves more than 90 minutes. It has a big kids’ activity area that is fully indoors.

Our last scheduled event was a Circle Line Harbor Lights Cruise from 7pm to 9pm. In the summer, this is a sunset cruise of lower Manhattan and the Statue of Liberty. Just at the end you see the city lights against the night sky. The tour guide was entertaining and smart! I learned interesting NYC facts and history. They have enclosed areas with windows for bad weather but that would not be as fun. Being able to sit up on the open-air top deck made the view amazing for everyone.

Will LLMs get us the Missing Data for Solving Physics?

Tyler suggested that a “smarter” LLM could not master the unconquered intellectual territory of integrating general relatively and quantum mechanics.

Forget passing Ph.D. level qualifying exams. (j/k James) Are the AI’s going to significantly surpass human efforts in generating new knowledge?

What exactly is the barrier to solving the fundamental mysteries of physics? How do we experimentally confirm that all matter breaks down to vibrating strings?

In a podcast episode of Within Reason, Brian Greene says that we can imagine an experiment that would test the proposed unifying String Theory. The Large Hadron Collider is not big enough (17 miles in circumference is too small). We would need a particle accelerator as big as a galaxy.

ChatGPT isn’t going to get us there. However, Brian Greene did suggest that there is a possibility that an advance in mathematics could get us closer to being able to work with the data we have.

Beh Yeoh summarized what he heard from Tyler et al. at a live event on how fast the acceleration in our knowledge will get boosted from AI. They warned that some areas will hit bottlenecks and therefore not advance very fast. Anything that require clinical trials, for example, isn’t going to proceed at breakneck speed. Ben warns that “Protein folding was a rare success” so we shouldn’t get too too excited about acceleration in biotech. If advances in physics require bigger and better physical tools to do more advanced experimental observations, then new AI might not get us far.

However, one of the categories that made Yeoh’s list of where new AI might accelerate progress is “mathematics,” because developing new theories does not face the same kind of physical constraints.

So, we are unlikely to obtain new definitive tests of String Theory to the extent that it is a capital-intensive field. The scenario for AI advances to bring a solution to this empirical question in my lifetime is probably if the solution comes from advances in mathematics so that we can reduce our reliance on new observational data.

Related links:
my article for the Gospel Coalition – We are not “building God,” despite some claims.
my article for EconLog – AI will be constrained by the same problem that David Hume faced. AI can predict what is likely to occur in the future based on what it has observed in the past.

“The big upward trend in Generative AI/LLM tool use in 2025 continues but may be slowing.” Have we reached a plataue, at least temporarily? Have we experienced the big upswing already in productivity, and it’s going to level out now? At least programming will be less painful forever after?

LLM Hallucination of Citations in Economics Persists with Web-Enabled Models” I realize that, as of today, you can pay for yet-better models than what we tested. But if web-enabled 4o can’t cite Krugman properly, you do wonder if “6o” will be integrating general relatively and quantum mechanics. A slightly longer context window probably isn’t going to do it.

Chesterton Right about the History of Patriotism

Unexpectedly, Chesterton on Patriotism from 2021 is one of my all-time top performing posts due to a slow but steady drip of Google Search hits.

In 1908, G.K. Chesterton published the following line in Orthodoxy,

This, as a fact, is how cities did grow great. Go back to the darkest roots of civilization and you will find them knotted round some sacred stone or encircling some sacred well.

By 1908, Chesterton had likely been exposed to Victorian early anthropological thinkers like Tylor and Frazer. Maybe I shouldn’t be impressed that he’d get it right, but I don’t think of Chesterton as having access to the best and latest evidence for how human civilization evolved.

I was browsing the book Sapiens (2011) this week and came across:

In the conventional picture, pioneers first built a village, and when it prospered, they set up a temple in the middle. But Göbekli Tepe suggests that the temple may have been built first, and that a village later grew up around it. (pg 102)

Today’s post is dedicated to congratulating Chesterton on making a conjecture that turns out to line up with the best we now know and archeological evidence that was only discovered in 1995.

Chesterton wrote,

The only way out of it seems to be for somebody to love Pimlico; to love it with a transcendental tie and without any earthly reason. If there arose a man who loved Pimlico, then Pimlico would rise into ivory towers and golden pinnacles… If men loved Pimlico as mothers love children, arbitrarily, because it is theirs, Pimlico in a year or two might be fairer than Florence.

Also this month I witnessed Americans celebrating the 4th of July. People here love this country “because it is theirs.”

I’ve heard a lot of panicking in the past 10 years about the fate of the nation, and I think we should always be in a partial state of paranoia. But, if love of country is needed in the recipe, we’ve still got it. (you might need an Instagram account to view Mark Zuckerberg Zuck wakeboarding in a bald eagle suit)

Hallucination as a User Error

You don’t use a flat head screwdriver to drill a hole in a board. You should know to use a drill.

I appreciate getting feedback on our manuscript, “LLM Hallucination of Citations in Economics Persists with Web-Enabled Models,” via X/Twitter. @_jannalulu wrote: “that paper only tested 4o (which arguably is a bad enough model that i almost never use it).”

Since the scope and frequency of hallucinations came as a surprise to many LLM users, they have often been used as a ‘gotcha’ to criticize AI optimists. People, myself included, have sounded the alarm that hallucinations could infiltrate articles, emails, and medical diagnoses.

The feedback I got from power users on Twitter this week made me think that there might be a cultural shift in the medium term. (Yes, we are always looking for someone to blame.) Hallucinations will be considered the fault of the human user who should have:

  1. Used a better model (learn your tools)
  2. Written a better prompt (learn how to use your tools)
  3. Assigned the wrong task to LLMs (it’s been known for over 2 years that general LLM models hallucinate citations). What did you expect from “generative” AI? LLMs are telling you what literature ought to exist as opposed to what does exist.

Counting Hallucinations by Web-Enabled LLMs

In 2023, we gathered the data for what became “ChatGPT Hallucinates Nonexistent Citations: Evidence from Economics.” Since then, LLM use has increased. A 2025 survey from Elon University estimates that half of Americans now use LLMs. In the Spring of 2025, we used the same prompts, based on the JEL categories, to obtain a comprehensive set of responses from LLMs about topics in economics.

Our new report on the state of citations is available at SSRN: “LLM Hallucination of Citations in Economics Persists with Web-Enabled Models

What did we find? Would you expect the models to have improved since 2023? LLMs have gotten better and are passing ever more of what used to be considered difficult tests. (Remember the Turing Test? Anyone?) ChatGPT can pass the bar exam for new lawyers. And yet, if you ask ChatGPT to write a document in the capacity of a lawyer, it will keep making the mistake of hallucinating fake references. Hence, we keep seeing headlines like, “A Utah lawyer was punished for filing a brief with ‘fake precedent’ made up by artificial intelligence

What we call GPT-4o WS (Web Search) in the figure below was queried in April 2025. This “web-enabled” language model is enhanced with real-time internet access, allowing it to retrieve up-to-date information rather than relying solely on static training data. This means it can answer questions about current events, verify facts, and provide live data—something traditional models, which are limited to their last training cutoff, cannot do. While standard models generate responses based on patterns learned from past data, web-enabled models can supplement that with fresh, sourced content from the web, improving accuracy for time-sensitive or niche topics.

At least one third of the references provided by GPT-4o WS were not real! Performance has not significantly improved to the point where AI can write our papers with properly incorporated attribution of ideas. We also found that the web-enabled model would pull from lower quality sources like Investopedia even when we explicitly stated in the prompt, “include citations from published papers. Provide the citations in a separate list, with author, year in parentheses, and journal for each citation.” Even some of the sources that were not journal articles were cited incorrectly. We provide specific examples in our paper.

In closing, consider this quote from an interview with Jack Clark, co-founder of Anthropic:

The best they had was a 60 percent success rate. If I have my baby, and I give her a robot butler that has a 60 percent accuracy rate at holding things, including the baby, I’m not buying the butler.

Illusions of Illusions of Reasoning

Even since Scott’s post on Tuesday of this week, a new response has been launched titled “The Illusion of the Illusion of the Illusion of Thinking

Abstract (emphasis added by me): A recent paper by Shojaee et al. (2025), The Illusion of Thinking, presented evidence of an “accuracy collapse” in Large Reasoning Models (LRMs), suggesting fundamental limitations in their reasoning capabilities when faced with planning puzzles of increasing complexity. A compelling critique by Opus and Lawsen (2025), The Illusion of the Illusion of Thinking, argued these findings are not evidence of reasoning failure but rather artifacts of flawed experimental design, such as token limits and the use of unsolvable problems. This paper provides a tertiary analysis, arguing that while Opus and Lawsen correctly identify critical methodological flaws that invalidate the most severe claims of the original paper, their own counter-evidence and conclusions may oversimplify the nature of model limitations. By shifting the evaluation from sequential execution to algorithmic generation, their work illuminates a different, albeit important, capability. We conclude that the original “collapse” was indeed an illusion created by experimental constraints, but that Shojaee et al.’s underlying observations hint at a more subtle, yet real, challenge for LRMs: a brittleness in sustained, high-fidelity, step-by-step execution. The true illusion is the belief that any single evaluation paradigm can definitively distinguish between reasoning, knowledge retrieval, and pattern execution.

As am writing a new manuscript about hallucination of web-enabled models, this is close to what I am working on. Conjuring up fake academic references might point to a lack of true reasoning ability.

Do Pro and Dantas believe that LLMs can reason? What they are saying, at least, is that evaluating AI reasoning is difficult. In their words, the whole back-and-forth “highlights a key challenge in evaluation: distinguishing true, generalizable reasoning from sophisticated pattern matching of familiar problems…”

The fact that the first sentence of the paper contains the bigram “true reasoning” is interesting in itself. No one dobuts that LLMs are reasoning anymore, at least within their own sandboxes. Hence there have been Champagne jokes going around of this sort:

If you’d like to read a response coming from o3 itself, Tyler pointed me to this:

Waymo and Pictures Online

Memes on Twitter are at least as important today as political cartoons of the 19th and 20th centuries. Two memes went viral this week, surrounding the events of protests in Los Angeles.  

The first meme reflects how Lord of the Rings is deeply embedded in American culture. Two million views means that most people don’t need the joke explained. (Part of the Lord of the Rings story is that the wise and powerful elves abandon chaotic Middle Earth for the safety of the Grey Havens. Similarly, the Waymo cars quietly drove themselves to safety away from Los Angeles after several had been vandalized and burned.)

I worry that The Lord of the Rings has made us too optimistic. Americans rarely tolerate stories that do not have happy endings. Has that made it hard for us to understand global events, or impaired our ability to accurately predict how most battles will end?

The next viral meme about the Waymos has two tweets to track. The originator of the joke got half a million views. Someone who added AI-generated images to the original text got half a million views as well.

The four quadrants form is a common meme format. Starting in the upper left, perhaps the best way to explain this is that a rigid socialist might resent Waymo as a symbol of Big Tech. At the very least, a socialist who wields state control might want to nationalize Waymo if there are going to be autonomous cars.

“Protect the Waymos” voices support for the police and traditional property rules. This is a joke, keep in mind, so it’s not meant to make perfect sense. The Libertarian Right might be more likely to support individuals protecting themselves with their own weapons as opposed to relying on the police state.

Compare the meme world to the news. I feel like this might become quaint soon, so here’s what it looks like to use the Google News search function.

The Los Angeles Times reports

The autonomous ride-hailing service Waymo has suspended operations in downtown Los Angeles after several of its vehicles were set on fire during protests against immigration raids in the area.

At least five Waymo vehicles were destroyed over the weekend, the company said. Waymo removed its vehicles from downtown but continues to operate in other parts of Los Angeles.

The flaming Waymo image is all over the news and internet. For one thing, people are interested in it because it’s real. This was supposed to be the year of deepfakes, and yet it’s mostly real images and real gaffes that are still making the news.

At this moment in time, most Americans do not yet have Waymo in their cities. Oddly enough, losing an inventory of several cars might be well worth the publicity the company is receiving. Two million viewers of the video of the little driverless cars making an orderly exit from Los Angeles might come away thinking driverless cars are safe and sensible.

Here are more posts from my long-standing interest in cartoons and internet culture.

Kyla Scanlon also felt like the little cars on fire was worth a newsletter post. She wrote

We scroll past the burning car to see arguments about whether the burning was justified, then scroll past those to see memes about the arguments, then scroll past those to see counter-memes. The cycle feeds itself!

Papers about Economists Using LLMs

  1. The most recent (published in 2025) is this piece about doing data analytics that would have been too difficult or costly before. Link and title: Deep Learning for Economists

Considering how much of frontier economics revolves around getting new data, this could be important. On the other hand, people have been doing computer-aided data mining for a while. So it’s more of a progression than a revolution, in my expectation.

2. Using LLMs to actually generate original data and/or test hypotheses like experimenters: Large language models as economic agents: what can we learn from homo silicus? and Automated Social Science: Language Models as Scientist and Subjects

3. Generative AI for Economic Research: Use Cases and Implications for Economists

Korinek has a new supplemental update as current as December 2024: LLMs Learn to Collaborate and Reason: December 2024 Update to “Generative AI for Economic Research: Use Cases and Implications for Economists,” Published in the Journal of Economic Literature 61 (4)

4. For being comprehensive and early: How to Learn and Teach Economics with Large Language Models, Including GPT

5. For giving people proof of a phenomenon that many people had noticed and wanted to discuss: ChatGPT Hallucinates Non-existent Citations: Evidence from Economics

Alert: We will soon have an update for current web-enabled models! It would seem that hallucination rates are going down but the problem is not going away.

6. This was published back in 2023. “ChatGPT ranked in the 91st percentile for Microeconomics and the 99th percentile for Macroeconomics when compared to students who take the TUCE exam at the end of their principles course.” (note the “compared to”): ChatGPT has Aced the Test of Understanding in College Economics: Now What?

References          

Buchanan, J., Hill, S., & Shapoval, O. (2023). ChatGPT Hallucinates Non-existent Citations: Evidence from Economics. The American Economist69(1), 80-87. https://doi.org/10.1177/05694345231218454 (Original work published 2024)

Cowen, Tyler and Tabarrok, Alexander T., How to Learn and Teach Economics with Large Language Models, Including GPT (March 17, 2023). GMU Working Paper in Economics No. 23-18, Available at SSRN: https://ssrn.com/abstract=4391863 or http://dx.doi.org/10.2139/ssrn.4391863

Dell, M. (2025). Deep Learning for Economists. Journal of Economic Literature, 63(1), 5–58. https://doi.org/10.1257/jel.20241733

Geerling, W., Mateer, G. D., Wooten, J., & Damodaran, N. (2023). ChatGPT has Aced the Test of Understanding in College Economics: Now What? The American Economist68(2), 233-245. https://doi.org/10.1177/05694345231169654 (Original work published 2023)

Horton, J. J. (2023). Large Language Models as Simulated Economic Agents: What Can We Learn from Homo Silicus? arXiv Preprint arXiv:2301.07543.

Korinek, A. (2023). Generative AI for Economic Research: Use Cases and Implications for Economists. Journal of Economic Literature, 61(4), 1281–1317. https://doi.org/10.1257/jel.20231736

Manning, B. S., Zhu, K., & Horton, J. J. (2024). Automated Social Science: Language Models as Scientist and Subjects (Working Paper No. 32381). National Bureau of Economic Research. https://doi.org/10.3386/w32381