In contrast to the standard economics theory, an analysis of the Survey of Consumer Finance shows that wealthy investors have a higher return on their stocks than their poorer counterparts. The paper presents a general financial and economic theory of risk and search behavior to address the...

This paper studies the dynamic optimization problem of a household when portfolio adjustment is costly. The analysis is motivated by the observation that on a monthly basis, less than 10% of stockholders typically adjust their portfolio of common stocks. We use this, and related observations, to...

Barber and Odean (2000) study the relationship between trading frequency and returns. They find that households who trade more frequently have a lower net return than other households. But all households have about the same gross return. They argue that these results cannot emerge from a model...

We show that the stock market pricing the presidential margin of victory in a nonlinear concave fashion, with a higher price for medium than slight or crushing victories. We conjecture that the margin of victory reflects president confidence and the ability to execute policies. A small margin...

We develop a monthly Global Financial Stability Index (GFSX) that incorporates the global stock market outlook, momentum, and overall risk. Refining the financial stability concept presents challenges because of the many different approaches researchers have pursued, as well as the availability...

We present an econometric framework that estimate conjoined ‘fixed effect' components to analyze the presidential puzzle, by separating party policy impact on the stock market from each president ability. Our methodology enable us to examine what drives the higher excess return under...

This paper examines the relation between political regime change, a new president from a new party, and propensity for CEO turnover. Our key conjecture is that some companies, especially those that are politically sensitive, will politically reposition to adapt to the new political regime, and...

This paper shows a non-linear convex relationship between an investor's experience and overconfidence. While the literature argues that overconfidence increases at first owing to bias in self-attribution, such as taking credit for success, this paper demonstrates that investor overconfidence...

This paper studies the oil price movement accounting for time horizon. Historical data demonstrates that the price of oil jumps from one state (condition) to another, remains stable stays for some time, and then jumps again to a new state, a phenomenon that is similar to 'leap frog'. Motivated...

The purpose of this document is to lay out a general strategy for companies who competes with Amazon, in some segments of the market. The strategy includes three dimensions: marketing, behavioral (finance), and innovation. The marketing component suggests head to head match-up. The behavioral...