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Simple Rules for a Complex World with Arti?cial Intelligence

Author

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  • Jesus Fernandez-Villaverde

    (University of Pennsylvania)

Abstract

Can articial intelligence, in particular, machine learning algorithms, replace the idea of simple rules, such as ?rst possession and voluntary exchange in free markets, as a foundation for public policy? This paper argues that the preponderance of the evidence sides with the interpretation that while arti?cial intelligence will help public policy along important aspects, simple rules will remain the fundamental guideline for the design of institutions and legal environments where markets operate. “Digital socialism” might be a hipster thing to talk about in Williamsburg or Shoreditch, but it is as much of a chimera as “analog socialism.”

Suggested Citation

  • Jesus Fernandez-Villaverde, 2020. "Simple Rules for a Complex World with Arti?cial Intelligence," PIER Working Paper Archive 20-010, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    • Handle: RePEc:pen:papers:20-010
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    File URL: https://economics.sas.upenn.edu/system/files/working-papers/20-010%20PIER%20Paper%20Submission.pdf
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    References listed on IDEAS

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    Cited by:

    1. Naudé, Wim, 2023. "Artificial Intelligence and the Economics of Decision-Making," IZA Discussion Papers 16000, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Arti?cial intelligence; machine learning; economics; law; rule of law;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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