8 papers
Cognitive Debt: AI as Intellectual Leverage and the Dynamics of Systemic Fragility
Shuchen Meng
We develop a formal theory of cognitive debt: the stock of unverified reasoning obligations that accumulates when individuals use AI as a substitute rather than a complement for fi…
AI-Driven Alpha Decay: Algorithmic Homogenization, Reflexive Signal Erosion, and the Paradox of Intelligent Markets
Shuchen Meng, Xupeng Chen
We show that AI-driven investment strategies are inherently self-defeating at scale. As AI adoption rises, three mutually reinforcing channels -- signal crowding, performative sign…
Artificial Intelligence and Systemic Risk: A Unified Model of Performative Prediction, Algorithmic Herding, and Cognitive Dependency in Financial Markets
Shuchen Meng, Xupeng Chen
We develop a unified model in which AI adoption in financial markets generates systemic risk through three mutually reinforcing channels: performative prediction, algorithmic herdi…
When AI Levels the Playing Field: Skill Homogenization, Asset Concentration, and Two Regimes of Inequality
Xupeng Chen, Shuchen Meng
Generative AI compresses within-task skill differences while shifting economic value toward concentrated complementary assets, creating an apparent paradox: the technology that equ…
Advanced User Credit Risk Prediction Model using LightGBM, XGBoost and Tabnet with SMOTEENN
Chang Yu, Yixin Jin, Qianwen Xing +3
Bank credit risk is a significant challenge in modern financial transactions, and the ability to identify qualified credit card holders among a large number of applicants is crucia…
Enhancing Exchange Rate Forecasting with Explainable Deep Learning Models
Shuchen Meng, Andi Chen, Chihang Wang +5
Accurate exchange rate prediction is fundamental to financial stability and international trade, positioning it as a critical focus in economic and financial research. Traditional…