exhibit a local bias, even when we control for family and friends. In addition to the regular crowd, our sample includes angel …-like investors, who invest considerable amounts and exhibit a larger local bias. Well-diversified investors are less likely to suffer … having a local bias. Overall, we find that investors who direct their investments to local firms more often pick start …

subjective beliefs on the distribution of returns. However, the bias of these endogenous subjective beliefs induces the choice of …

citizens with low political trust. For citizens with high trust, such signals appear to enhance life satisfaction. This means …, particularly when faced with low political trust. …

We show theoretically that the weak transmission of beliefs to actions induces a strong bias in basic asset pricing …