Simple Rules for a Complex World with Artificial Intelligence

20 Pages Posted: 24 Mar 2020

See all articles by Jesús Fernández-Villaverde

Jesús Fernández-Villaverde

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 20, 2020

Abstract

Can artificial intelligence, in particular, machine learning algorithms, replace the idea of simple rules, such as first 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 artificial 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.”

Keywords: Artificial intelligence, machine learning, economics, law, rule of law

JEL Classification: D85, H10, H30

Suggested Citation

Fernández-Villaverde, Jesús, Simple Rules for a Complex World with Artificial Intelligence (March 20, 2020). PIER Working Paper No. 20-010, Available at SSRN: https://ssrn.com/abstract=3559378 or http://dx.doi.org/10.2139/ssrn.3559378

Jesús Fernández-Villaverde (Contact Author)

University of Pennsylvania - Department of Economics ( email )

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