Finbar Curtin and Matthew Burgess’ recent article analyzing the relationship between the climate and economy has been interpreted as a study proving that climate change’s impact on economic growth is weak. Garvin Jabusch argues that this interpretation is wrong. Rather, the article concludes that statistical estimates of this relationship are limited by data and future capital allocation should favor a ‘no-regrets’ approach anchored in observable cost curves and productive capacity.

In new research, Wei Cai, Andrea Prat, and Jiehang Yu evaluate how mergers affect employee satisfaction. They find that acquired firms report a decline in worker satisfaction, primarily revolving around “soft” benefits, such as workplace culture, management quality, and trust.

The competitiveness of the artificial intelligence market at first glance masks how investment arrangements and partnerships between the largest players risks undermining their incentives to compete. Regulators must continue to monitor these arrangements for anticompetitive effects, writes Shishene Jing.

The 1930s were a difficult time for classical liberals. In response to the Great Depression, the federal government undertook a massive expansion of its...

In new research, Xiao Dong, Paul Koh, Devesh Raval, Dominic Smith, and Brett Wendling evaluate how well divestiture remedies work for mergers in the supermarket industry. They find that past supermarket divestitures lead to lower employment, reduced sales, and higher rates of exit from the market relative to comparable non-divested supermarkets.  

In a new working paper, Magnus Lodefalk, Lydia Löthman, Michael Koch, and Erik Engberg examine how generative AI is reshaping the labor market. They find little evidence that AI has cut the total number of jobs, but show that it has slowed hiring for the youngest workers, especially in the AI-exposed occupations where young women are concentrated. Over time, AI’s effect on entry-level roles risks thinning the next generation’s ability to build the skills and networks that careers are made of.