Academic round-up: AI, productivity, bonds, ESG scores, and more

Enhance your portfolio positioning with impartial academic findings

In this edition of the Academic round-up, we present a number of compelling studies covering critical topics, including the role of gold within investors' portfolios, the impact of AI on productivity, and ways to approach risk management in a new market regime.

Deep Learning in Quantitative Trading (Cambridge University Press)

The authors aim to navigate the complexities of the field while inspiring innovation in the integration of deep learning within quantitative finance.

Understanding Gold

The authors of this paper examine the investment characteristics of gold and assess its reliability as a hedging asset.

Pension Plan Systems: Risk‐Sharing Implications (The Journal of Finance)

Given the large size of pension funds in the economy, it is important to consider their asset demands for determining equilibrium asset prices.

How AI Could Lift Productivity and GDP Growth (Wharton School)

Gen AI tools will be used in more and more tasks exposed to AI productivity gains, alongside advancements in the technology and cost savings for employers.

Expected Stock Returns in Bullish Times (IESE Business School)

After an extended period of high (low) stock market returns, investors have a tendency to extrapolate the good (bad) times and expect high (low) returns.

Why Is Manufacturing Productivity Growth So Low? (Becker Friedman Institute)

The authors of this paper introduce a price-based dual approach – contrasting consumer-facing and producer-facing price indices – to assess measurement in real output and TFP growth.

Why ESG Scores Are Moving the $4 Trillion Municipal Bond Market (Wharton School)

Investors in the $4 trillion U.S. municipal bond market are paying more for bonds with credible environmental, social, and governance information.

A Contextualized Risk Metric for Long-Term Investing (Stanford University)

Risk is a fundamental ingredient of finance, and to achieve long-run success, investors must be able to properly manage risk.