> We find that the adoption of Cursor leads to a significant, large, but transient increase in project-level development velocity, along with a significant and

> We find that the adoption of Cursor leads to a significant, large, but transient increase in project-level development velocity, along with a significant and persistent increase in static analysis warnings and code complexity. Further panel generalized method of moments estimation reveals that the increase in static analysis warnings and code complexity acts as a major factor causing long-term velocity slowdown.