Media: Wall Street Journal
Best paper award winner at the FMA 2015
"The Anatomy of Financial Frictions: New Evidence from Private Firms" w/ Jamie Brown, Tony Cookson, and Ivan Ivanov, FRA Early Ideas Session
Local financial development causes long-lasting improvements in consumer financial health. We use credit panel data and variation in financial development across Native American reservations caused by Congressionally imposed differences in court enforcement of civil contracts. Young consumers on reservations with more financial activity more quickly engage in formal credit markets, an effect that leads to greater long-run financial health.
Finalist for best paper award in Asset Pricing at the 2015 SFS Cavalcade
Leverage is inversely related to individual investor performance. Evidence comes from CFTC regulation capping the maximum permissible leverage available to U.S. retail traders compared to unregulated European traders who trade on the same brokerages. Overconfidence jointly explains demand for leverage and subsequent poor performance. Supplemental Materials
Norman Award Grant for creative projects in the Social Sciences,
Webinar for the Retirement Income Industry Association
Subjective mortality beliefs are fat-tailed and affect consumption/savings decisions. A run-of-the-mill life-cycle model calibrated to subjective mortality beliefs can explain under-saving while young, under-consumption while retired, and the high equity premium.
The patterns of communication between traders supports the growth of active strategies. Using novel data from a social network linked to individual investment accounts, traders broadcast their own successes, while recipients trade more when their peers perform well.