Behavioral finance studies the application of psychology to finance, with a focus on
individual-level cognitive biases. I describe here the sources of judgment and decision …

We study the influence of financial innovation by fintech brokerages on individual investors'
trading and stock prices. Using data from Robinhood, we find that Robinhood investors …

As a theory of profit, resource-based theory is focused on a single causal mechanism—
competitive advantage. Although this focus has been useful in helping to understand some …

We study brokerage platform outages to examine the impact of retail investors on financial
markets. We contrast outages at Robinhood, which caters to inexperienced investors, with …

Does the historical macroeconomic environment affect preferences for redistribution? We
find that individuals who experienced a recession when young believe that success in life …

Building on evidence that lifetime experiences shape individuals' macroeconomic
expectations, we study asset prices in an economy in which a representative agent learns …

Using novel survey data, we document that individuals extrapolate from recent personal
experiences when forming expectations about aggregate economic outcomes. Recent …

We study how managers respond to hurricane events when their firms are located in the
neighborhood of the disaster area. We find that the sudden shock to the perceived liquidity …

Investor sentiment, defined broadly, is a belief about future cash flows and investment risks
that is not justified by the facts at hand. The question is no longer whether investor sentiment …

We investigate whether individual experiences of macroeconomic shocks affect financial risk
taking, as often suggested for the generation that experienced the Great Depression. Using …