An LLM Workflow for Functional Form Sensitivity Analysis -- by Isaiah Andrews, Simon C. Essig Aberg, Jesse M. Shapiro
EconomicsData Science
THE AI ANGLE
Running workflows to test functional form sensitivityResearchers developed a large language model workflow to test functional form sensitivity in empirical estimation. The tool searches for analytic solutions or uses constrained numerical methods to establish a verifiable lower bound on sensitivity. This process gives practitioners a fast way to check if alternative functional forms that match data fit alter their main estimates.
THE TEACHING ANGLE
Classes can examine whether an empirical finding holds value if alternative functional forms fit the data equally well yet change the target estimate.Read the original at nber.org Generate teaching or study materials
More in Economics
- Microsoft offers voluntary buyouts to 60,000 employees as AI leads to efficiency pushCNBC — Technology · October 27, 2026
- From Carnegie to Claude: AI wealth could reshape philanthropyPhys.org — Technology · October 27, 2026
- When Cash Wakes Up: Inertia in Institutional Money Market Funds and the Potential Effects of AI Disruption -- by Ali Hortaçsu, Younggeun YooNBER Working Papers · October 27, 2026
- Netherlands to replace 25,000 government jobs with AI in efficiency drive to save €3.5 billionTechRadar · October 27, 2026
- HouseholdBench: Evaluating Large Language Models as Predictors of Household Economic Behavior -- by Jin Huang, Diego Ferreras Garrucho, Yutong Xie, Walter M. Yuan, Qiaozhu Mei, Chen Lian, Jonathon HazellNBER Working Papers · October 26, 2026