This Is How the AI Stock Boom Plays Out: Justin Fox

In the years after the internet stock boom-and-bust of the late 1990s and early 2000s, financial economists searched for more satisfying explanations of what had happened than “investors went crazy.” Among the most successful were Lubos Pastor and Pietro Veronesi of the University of Chicago Booth School of Business, whose paper “Technological Revolutions and Stock Prices,” published in the American Economic Review in 2009 (ungated version here), was the focus of an entire conference at the Massachusetts Institute of Technology this month.

The occasion was that the paper had won the biennial Stephen A. Ross Prize from the Foundation for Advancement of ...