Delay discounting — often referred to as hyperbolic discounting in the financial literature — is defined by a consistent preference for smaller, immediate rewards over larger, delayed rewards, and by failure of future consequences to curtail current consummatory behaviors. Previous research...

We examine how investor preferences and beliefs affect trading in relation to past gains and losses. The probability of selling as a function of profit is V-shaped; at short holding periods, investors are more likely to sell big losers than small ones. There is little evidence of an upward jump in...

Despite widespread awareness of the detrimental impact of CO₂ pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel microdata about multinational firms' CO₂ emissions across countries, we document that firms headquartered in...

In this chapter we review the literature on financial counseling, financial literacy, and consumer decision making and look at a financial counseling/planning program in India where consumers revealed their risk appetite, future financial goals, and current assets and liabilities. The results...

For years, online retailers have maintained a price advantage over brick-and-mortar retailers by not collecting sales tax at the time of sale. Recently, several states have required that online retailer Amazon collect sales tax during checkout. Using transaction-level data, we document that...

We explore the effects of mandatory third-party review of mortgage contracts on consumer choice--including the terms and demand for mortgage credit. Our study is based on a legislative pilot carried out by the State of Illinois in a selected set of zip codes in 2006. Mortgage applicants with low...

A common view is that deposit rates are determined primarily by supply: depositors require higher deposit rates from risky banks, thereby creating market discipline. An alternative perspective is that market discipline is limited (e.g., due to deposit insurance and/or enhanced capital...