People's perceptions about others play an important role in shaping their own attitudes and behaviors, as well as social norms more broadly. This review presents a meta-analysis of the recent empirical literature that examines perceptions about others in the field. We document a number of...

The question of whether and how mutual fund managers provide valuable services for their clients motivates one of the largest literatures in finance. One candidate explanation is that funds process information about future asset values and use that information to invest in high-valued assets....

We study the implications of a particular form of irrationality on the pricing behavior of firms in a monopolistic-competitive market with incomplete information. We assume that firms are overconfident, meaning that they over-estimate their abilities to understand the correct model of the...

We study an ambiguity-averse agent with uncertainty about income dynamics who chooses what aspects of the income process to learn about. The agent chooses to learn most about income dynamics at the very lowest frequencies, which have the greatest effect on utility. Deviations of consumption from...

This paper shows that accounting for variation in mistakes can be crucial for welfare analysis. Focusing on consumer underreaction to not-fully-salient sales taxes, we show theoretically that the efficiency costs of taxation are amplified by differences in underreaction across individuals and...

The Great Recession and worldwide financial crisis have exploded fiscal imbalances and brought fiscal policy and inflation to the forefront of policy concerns. Those concerns will only grow as aging populations increase demands on government expenditures in coming decades. It is widely perceived...