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...
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A Theory of Socially Responsible Investment
The Review of Economic Studies, 92(2), 1193–1225
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...
The Impact of Green Investors on Stock Prices
We study the impact of green investors on stock prices in a dynamic equilibrium model where investors are green, passive or active. Green investors...
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Scale or Yield? A Present-Value Identity
The Review of Financial Studies, 37(3), 950–988
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Personality differences and investment decision-making
Journal of Financial Economics, 153, 103776
Polarized Expectations, Polarized Consumption
This paper argues that political affiliation plays a central role in shaping household expectations and consumption behavior. Using survey and...
Chinese Debt Capital Markets - An Emerging Global Market with Chinese Characteristics
With the deepening of China's reform and opening up, and the sustained development of the Chinese economy, the Chinese bond market has become an...
Centralized vs Decentralized Markets: The Role of Connectivity
We consider a setting in which privately informed agents are located in a network and trade a risky asset with other agents with whom they are...
