This paper conducts a laboratory experiment to assess the impact of social comparisons on the disposition effect. We set up two types of interventions on social comparisons to specifically explore two questions that appeal to us: on the one hand, manipulating the sensitivity of financial...

Inspired by the recent health science findings that air pollution affects mental health and cognition, we examine whether air pollution can intensify the cognitive bias observed in the financial markets. Based on a proprietary data set obtained from a large Chinese mutual fund family consisting...

Climate change is a “crisis multiplier” that has profound effects on various aspects of household decisions. We study the impact of climate change concern on household’s climate-risk-based investment decisions using administrative account-level data of all retail investors from the...

Households are one of the key participants in the economy as they provide land, labor, and capital to the external economy, in exchange for incomes including rents, wages, interests, and profits; the incomes are then utilized to buy goods and services from the external economy again, rendering...

We study exposure to pollution information and investment portfolio allocations, exploiting the rollout of air quality monitoring stations in India. Using a triple-differences framework, we show that retail investors' investments in "brown" stocks are negatively related to local air pollution...