Publications

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...

Evidence from experiments, surveys, and the field has uncovered both underreaction and overreaction to new information. We provide new experimental...

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...

We propose a loglinear present-value identity in which investment ("scale"), profitability ("yield"), and discount rates determine a firm’s market-to...

Artificial intelligence will both be of considerable help to the financial authorities and bring new challenges. This column argues the authorities...

We study the impact of green investors on stock prices in a dynamic equilibrium model where investors are green, passive or active. Green investors...

Review of Finance, 28 (2), 511–550

This paper argues that political affiliation plays a central role in shaping household expectations and consumption behavior. Using survey and...

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...

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...

When members of the same household have different risk preferences, whose preference matters more for investment decisions and why? We propose an...

We propose a novel way to estimate a portfolio’s abnormal price, the percentage gap between price and the present value of dividends computed with a...