We show that a model featuring an average commodity factor, a carry factor, and a momentum factor is capable of describing the cross-sectional variation of commodity returns. More parsimonious one- and two-factor models that feature only the average and/or carry factors are rejected. To provide...

Traditional forms of robo-advice were targeted to help individuals make portfolio allocation decisions. Based on the balance-sheet view of households, the scope for robo-advising has been expanding to many other personal-finance choices, such as households' saving and consumption decisions, debt...

We argue that voters' political support for the ruling party shapes the transmission of fiscal policy measures that require households' action, especially when political polarization is high. We find that the take-up rates of a large-scale Indian loan-guarantee program (Mudra loans) are higher...

In this chapter, we first discuss the limitations of traditional financial advice, which led to the emergence of robo-advising. We then describe the main features of robo-advising and propose a taxonomy of robo-advisors based on four defining dimensions---personalization, discretion,...

In this chapter, we first discuss the limitations of traditional financial advice, which led to the emergence of robo-advising. We then describe the main features of robo-advising and propose a taxonomy of robo-advisors based on four defining dimensions: personalization, discretion, involvement,...

We document a positive relation between network centrality and risk-adjusted performance in a delegated investment management setting. More connected managers take more portfolio risk and receive higher investor flows, consistent with these managers improving their ability to exploit investment...

We exploit a unique dataset to study how the information sets of retail and institutional investors evolve over time. In line with theoretical models of rational inattention, investors’ information set is related to their sophistication, with more sophisticated investors tracking more stocks....

Algorithms hold great potential to lower costs and democratize access to a wide variety of consumer services. How do humans interact with algorithms, and what are the major barriers to algorithmic adoption? We answer these questions using a structural model applied to unique data that captures...

Robo-advice uses big and open data to provide consumers with fully-informed and rational-expectations benchmarks in all realms of household finance, including consumption, saving, investment, and debt-management choices. It also minimizes the monetary, cognitive, and psychological costs...