Barring a last-minute legal challenge, the Trump-era policy known as Title 42 will expire at 11:59 p.m. Eastern on Thursday. It was put in place three years ago under the premise of preventing the spread of Covid-19. Border agents, state and local officials and even President Biden’s top aides in Washington are all bracing for the arrival of tens of thousands of migrants in the coming days. Already, people have begun crossing into U.S. border towns, anticipating the end of Title 42, which since 2020 has allowed the government to swiftly expel citizens of several countries back to Mexico. Three cities in Texas — Brownsville, Laredo and El Paso — have declared a state of emergency. No one is certain what will happen after Thursday. The federal government is expecting as many as 13,000 migrants each day immediately after the measure expires, up from about 6,000 on a typical day.
- Date Posted:
- May 8, 2023
We measure the impact of a major event in the advancement and dissemination of Generative AI technology, namely, the public release of ChatGPT, on equity returns at the firm level. Our key finding is that the arrival of ChatGPT had a sizable positive effect on the value of firms whose labor forces are more exposed to Generative AI and related Large Language Models (LLMs). Firms with higher exposure to the release of ChatGPT, as measured by the exposure of their labor force to being made more productive by tools like ChatGPT, outperform firms with lower exposures by over 40 basis points in daily excess returns during the two weeks following its release. Notably, these return differences are not only due to differences in labor force exposures across industries. Returns of firms with high labor force exposures also outperform firms with low exposures by about 40 basis points daily in industry-neutral portfolios.