The pricing kernel puzzle of Jackwerth (2000) concerns the fact that the empirical pricing kernel implied in S&P 500 index options and index returns is not monotonically decreasing in wealth as standard economic theory would suggest. Thus, those options are currently priced in a way such that...

To avoid electric-infrastructure-induced wildfires, millions of Californians had their power cut for hours to days at a time. We show that rooftop solar-plus-battery-storage systems increased in zip codes with the longest power outages. Rooftop solar panels alone will not help a household avert...

Active managers have strong incentives to concurrently realize tax losses and window dress portfolios at the ends of calendar quarters. Consequently, stocks with capital losses experience downward price pressure, and a large share of returns to momentum strategies is earned at these times. This...

The theory of stochastic dominance applied to financial decisions associates classes of investors with classes of gambles (random payoffs). Each investor resides in a class of mixed risk averters (MRA). Pairs of gambles, say, X and Y are classified according to a collection of mathematical...