Research highlight
Investor Memory and Biased Beliefs: Evidence from the Field
The Quarterly Journal of Economics, 140 (4), 2749–2804
Polarization, Purpose and Profit
We present a model in which firms compete for workers who value nonpecuniary job attributes, such as purpose, sustainability, political stances, or...
The Distribution of Investor Beliefs, Stock Ownership, and Stock Returns
Management Science, 72(2), 1595-1615
Marketwide Memory
We propose a novel measure that allows us to study memory associations in financial markets over the course of several decades. Using our measure, we...
The surprising leadership effect accelerators have on startup employees
Entrepreneurship training programs across the world aim at boosting the success of startups. But even when startups fail, these programs bring...
Bond Supply, Yield Drifts, and Liquidity Provision Before Macroeconomic Announcements
UK government bond yields tend to rise in a two-day window before labor market data releases and monetary policy news. This effect, particularly...
Causal Narratives
We study causal narratives – narratives which describe a (potentially incorrect) causal relationship between variables. In a series of experiments...
Research highlight
Reaching for Yield: Evidence from Households
Journal of Financial Economics, 168, 104057
Arbitrage Networks
This paper studies the general equilibrium implications of arbitrage trades in segmented financial markets. Arbitrageurs choose a category of trades...
When Private Firms Provide Public Goods: The Allocation of CSR Spending
This paper studies how firms allocate their Corporate Social Responsibility (CSR) expenditures to inform the welfare effects of corporate...
How central banks can meet the financial stability challenges arising from artificial intelligence
The growing use of artificial intelligence (AI) poses difficult challenges for the financial authorities. AI allows private-sector firms to optimise...
Information in Derivatives Markets: Forecasting Prices with Prices
Annual Review of Financial Economics, 17, 295-319
Five systemic threats and what to do about them
Systemic financial risk has both internal and external drivers. So, when we focus too strongly on preventing internal crises, such as the 2008 Global...
