We present the results of a randomized intervention to study how teaching financial literacy to 16-year old high-school students affects their behavior in risk and time preference tasks. Compared to two different control treatments, we find that teaching financial literacy makes subjects behave...

This study investigates the impact of algorithmic trading strategies on asset price mispricing and relative payoffs of human and algorithmic traders using the Smith- Suchanek-Williams (SSW - (Smith et al. (1988))) framework. A 2x2 treatment design varying algorithmic strategy (market-making or...

Field experiments in firms are a valuable tool for gaining insights into the causal effects of management controls in complex, real-world environments. Not only do they enable researchers to examine the effect of management controls individually, but they also provide a means of understanding...

A significant proportion of sell-side analysts’ recommendation revisions are directionally inconsistent with their earnings forecast revisions. For example, analysts revise earnings forecasts upward (downward) while simultaneously downgrading (upgrading) the recommendation. Prior research is...

We study the aggregate and distributional effects of corporate tax reforms when market power is heterogeneous across sectors and firms. We use a life-cycle model with incomplete markets in which capital and equity do not always move in tandem when corporate tax policy changes. On the one hand,...

We develop a novel experimental paradigm to study the causal impact of trading algorithms on informational efficiency, liquidity, and welfare. In our design, public information about the asset value is revealed during trading, which gives algorithms a reaction speed advantage. We distinguish...

This paper provides the first empirical analysis on whether and how intergenerational transmission affects children's risk preferences by exploiting exogenous variation in parents' risk preferences. We utilize parents' experiences to earthquakes---one of the most unpredictable natural...

Prior research has found that variation in the length of deadlines, or their presence, can affect risky choice. We study whether such results are affected if subject experience and some form of self-selection are allowed. We find that choices of experienced and self-selected subjects are immune...