This paper estimates a standard Dynamic Stochastic General Equilibrium (DSGE) model that includes a wage and price Phillip's curves with different expectation formation processes for Brazil and the USA. Other than the standard rational expectation process, we also use a limited rationality...

We test the out-of-sample trading performance of model-free reinforcement learning (RL) agents and compare them with the performance of equally-weighted portfolios and traditional mean-variance (MV) optimization benchmarks. By dividing European and U.S. indices constituents into factor datasets,...

This paper investigates how a sender, by providing free information to a perfectly rational receiver, can manipulate the receiver’s learning (change the receiver’s learning outcome). Formally, I employ a Bayesian persuasion model with the additional assumption that the receiver has costly...

We document that the duration of investors' information processing time improves the price discovery efficiency following public macroeconomic announcements. By exploiting the variations of the announcement timing across a large set of important macroeconomic announcements in China, our paper...

Financial illiteracy affects considerably the decision-making of individuals, leading to sub-optimal outcomes and lower financial welfare in the society. Although financial education has been demonstrated to improve financial knowledge, evidence of long-term effects is limited. This could be due...

This paper estimates a standard Dynamic Stochastic General Equilibrium (DSGE) model that includes a wage and price Phillip's curves with different expectation formation processes for Brazil and the USA. Other than the standard rational expectation process, we also use a limited rationality...

In the past decade, researchers in psychology and neuroscience studying human decision-making have increasingly adopted a framework that combines two systems, namely "model-free" and "model-based" learning. We import this framework into a simple financial setting, study its properties, and link...

This paper examines the role of spillover learning in shaping the value of exploratory versus incremental R&D. Using data from the pharmaceutical industry, we show that novel drug candidates generate more dynamic spillovers than incremental ones. That is, despite being more likely to fail in the...

We consider the dynamic pricing problem of a monopolist seller who sells a set of mutually substitutable products over a finite time horizon. Customer demand is sensitive to the price of each individual product and the reference price which is formed from a comparison among the prices of all...