Law Commons^™

Shocking Technology: What Happens When Firms Make Large It Investments?, James Bessen, Cesare Righi

Faculty Scholarship

Many economists see information technology (IT) as central to understanding trends in productivity, labor’s share of output, and employment, especially as new “artificial intelligence” (AI) technologies emerge. Yet it has been difficult to measure its effects. This paper takes a first look at the economic impacts of large custom software investment by firms—“IT shocks.” Using a novel difference-in-differences methodology, we estimate the productivity of these shocks and the associated effects on revenues and employment and we explore the implications in terms of labor’s share and other variables, including heterogeneous relationships by industry, AI use, and time. In our preferred models, …

Technological Due Process, Danielle K. Citron

Faculty Scholarship

Distinct and complementary procedures for adjudications and rulemaking lie at the heart of twentieth-century administrative law. Due process required agencies to provide individuals notice and an opportunity to be heard. Agencies could foreclose policy issues that individuals might otherwise raise in adjudications through public rulemaking. One system allowed focused advocacy; the other featured broad participation. Each procedural regime compensated for the normative limits of the other. Both depended on clear statements of reason.

The dichotomy between these procedural regimes has become outmoded. This century's automated decision-making systems collapse individual adjudications into rulemaking while adhering to the procedural safeguards of neither. …