Supply and Demand and the Term Structure of Interest Rates
Annual Review of Financial Economics, 16, 115 - 151
Trading Ahead of Barbarians’ Arrival at the Gate: Insider Trading on Non-Inside Information
Privately informed about firm fundamentals, corporate insiders detect activism-motivated trades better than other traders. This paper solves the model...
Credibility, trust, and perception of authorities’ performance
The credibility of an institution is, almost, synonymous with how well it is trusted. This column uses survey data to examine how trust in various...
Research highlight
The Gender Gap in Household Bargaining Power: A Revealed-Preference Approach
The Review of Financial Studies, hhae039
Investor Memory and Biased Beliefs: Evidence from the Field
We survey a large representative sample of retail investors in China to elicit their memories of stock market investment and return expectations. We...
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High-frequency trading in the stock market and the costs of options market making
Journal of Financial Economics, 159, 103900
The Law of Small Numbers in Financial Markets: Theory and Evidence
We build a model of the law of small numbers (LSN)—the incorrect belief that even small samples represent the properties of the underlying population...
The Inference-Forecast Gap in Belief Updating
Evidence from experiments, surveys, and the field has uncovered both underreaction and overreaction to new information. We provide new experimental...
Unintended Consequences of Holding Dollar Assets
We examine a novel mechanism whereby the US dollar’s global dominance can have a large, unexpected impact on foreign Treasury yields in crisis periods...
Research highlight
A Theory of Socially Responsible Investment
The Review of Economic Studies, rdae048
Scale or Yield? A Present-Value Identity
We propose a loglinear present-value identity in which investment ("scale"), profitability ("yield"), and discount rates determine a firm’s market-to...
How the financial authorities can take advantage of artificial intelligence
Artificial intelligence will both be of considerable help to the financial authorities and bring new challenges. This column argues the authorities...
Research highlight
Scale or Yield? A Present-Value Identity
The Review of Financial Studies, 37(3), 950–988
