Andersen, Steffen; Dimmock, Stephen; Nielsen, Kasper M.; … - 2024
We test whether forecast bias affects household stock trading by combining measures of bias elicited in laboratory … experiments with administrative trade-level data. On average, subjects exhibit positive forecast bias (i.e., extrapolators), while … a large minority exhibit negative forecast bias (i.e., contrarians). Forecast bias is positively associated with past …