Large language models (LLMs) have seen remarkable progress in speed, cost efficiency, accuracy, and the capacity to process larger amounts of text over the past year. This article is a practical guide to update economists on how to use these advancements in their research. The main innovations...

This article describes methods used in the field of spatial economics that combine insights from economic theory and evidence from data in order to answer counter- factual questions. I outline a general framework that emphasizes three elements: a specific question to be answered, a set of...

While hypothesis testing is a highly formalized activity, hypothesis generation remains largely informal. We propose a systematic procedure to generate novel hypotheses about human behavior, which uses the capacity of machine learning algorithms to notice patterns people might not. We illustrate...

In this paper, we provide a suite of tools for empirical market design, including optimal nonlinear pricing in intensive-margin consumer demand, as well as a broad class of related adverse-selection models. Despite significant data limitations, we are able to derive informative bounds on demand...

We assess evidence from randomized control trials (RCTs) on long-run economic productivity and living standards in poor countries. We first document that several studies estimate large positive long-run impacts, but that relatively few existing RCTs have been evaluated over the long-run. We next...

Per capita income in the richest countries of the world exceeds that in the poorest countries by more than a factor of 50. What explains these enormous differences? This paper returns to several old ideas in development economics and proposes that linkages, complementarity, and superstar effects...

How does technological progress in financial intermediation affect the economy? To address this question a costly-state verification framework is embedded into a standard growth model. In particular, financial intermediaries can invest resources to monitor the returns earned by firms. The...

Forecasts of experimental results can clarify the interpretation of research results, mitigate publication bias, and improve experimental designs. We collect forecasts of the results of three Registered Reports preliminarily accepted to the Journal of Development Economics, randomly varying four...

We develop a theoretical model of how factional affiliation and local accountability can shape the policy choices of local officials who are concerned about political survivals, and subsequently affect the long-term local development. We provide empirical evidence in support of the theoretical...

Substantial research in development economics has highlighted the presence of weak institutions, market failures and distortions in developing countries. Yet, much of the knowledge generated in international trade comes from workhorse models that abstract from these frictions. This review...