Theory suggests that, in the presence of local bias, the price of a stock should be decreasing in the ratio of the aggregate book value of firms in its region to the aggregate risk tolerance of investors in its region. We test this proposition using data on U.S. Census regions and states, and...

Using data on household portfolios and mortgage originations, we find that households residing in a city with few publicly traded firms headquartered there are more likely to own an investment home nearby. Households in these areas are also less likely to own stocks. This only-game-in-town...

We estimate a model of damage to corporate earnings from COVID-19. An unexpected pandemic lowers current earnings due to costly mitigation and reduces growth rates. Damage depends on the expected arrival of a vaccine that reverts earnings to normal. Using this model, we infer from analysts'...