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Part 1

AI and the Preference Paradox: When Larger Models Think More Like Humans

Large language models do not behave neutrally in economic decisions. In preference tasks, more advanced models become increasingly human-like and irrational. In belief tasks, they become more statistically rational. Simple role priming modestly improves performance, but deeper debiasing fails. AI agents inherit—and selectively correct—human behavioral distortions .

Part 2

AI and the Adoption Divide: Who Captures the Frontier, Who Falls Behind

A tractable firm-level framework explains why countries grow at the frontier’s rate yet remain persistently behind it. Absorptive capacity, institutions, credit frictions, and technology appropriateness determine relative income levels—not long-run growth. Development becomes a question of incentive design, selection, and adoption speed rather than invention alone.