Gorodnichenko, Yuriy; Yin, Xiao - 2024
We combine a customized survey and randomized controlled trial (RCT) to study the effect of higher-order beliefs on U ….S. retail investors' portfolio allocations. We find that investors' higher-order beliefs about stock market returns are … first- and higher-order beliefs. We find that an exogenous increase in first-order beliefs increases the portfolio share …