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Author:Leibovici, Fernando 

Journal Article
Artificial Intelligence and Inflation Forecasts

We explore the ability of large language models (LLMs) to produce in-sample conditional inflation forecasts during the 2019–23 period. We use a leading LLM (Google AI’s PaLM) to produce distributions of conditional forecasts at different horizons and compare these forecasts to those of a leading source, the Survey of Professional Forecasters (SPF). We find that LLM forecasts generate lower mean-squared errors overall in most years and at almost all horizons. LLM forecasts exhibit slower reversion to the 2 percent inflation anchor.
Review , Volume 106 , Issue 12 , Pages 14 pages

The Allocation of Immigrant Talent across Countries: Employment Gaps

A cross-country analysis found immigrants were more likely than natives to work in fields like food service and less likely to be in fields like engineering.
On the Economy

Journal Article
Finance and Development: Evidence from Firm-Level Data

An analysis of cross-country data sheds light on the link between finance and economic development.
The Regional Economist , Volume 27 , Issue 3

Trade Linkages in the Shadow of the Russia-Ukraine War

Skeptics have raised questions about the future of globalization. Could divisions over the war provide insights into the strength of global trade ties?
On the Economy

Journal Article
The Economic and Epidemiological Impact of COVID-19 and Government Policies: Part 2

Health and containment policies were effective at curbing the spread of COVID-19, but at a significant economic cost. State-level economic support policies were effective at mitigating this cost and helped further curb the spread of the virus.
Economic Synopses , Issue 15 , Pages 1-3

Working Paper
Firm Exit and Liquidity: Evidence from the Great Recession

This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to credit, are more likely to default than firms with more access to credit. This difference widened substantially in the Great Recession while, in contrast, default rates did not vary much by size, age, or productivity. We identify conditions under which standard models of firms subject to financial frictions ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 074

Supply Chain Disruptions and Inventory Dynamics

Firms appear to have moved away from a just-in-time inventory model to one that prioritizes resilience, as reflected in high levels of inventory holdings of intermediate inputs.
On the Economy

Shipping Disruptions in the Red Sea: Ripples across the Globe

Recent attacks on cargo vessels in the Red Sea have disrupted a major shipping lane. This analysis looks at the impact on shipping costs and global trade flows.
On the Economy

Journal Article
International Trade Policy During COVID-19

Recent trade policy implemented to avoid shortages of essential medical equipment amid COVID-19 has been related to the country’s trade imbalances in these goods.
Economic Synopses , Issue 35

Journal Article
The Role of Credit in the Exit of Firms Across U.S. Industries During the Great Recession

During the Great Recession, firms in industries with higher shares of delinquent firms were more likely to go out of business.
Economic Synopses , Issue 12

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