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Exposure to the COVID-19 stock market crash and its effect on household expectations

Hanspal, Tobin; Weber, Annika; Wohlfart, Johannes - 2020

, desired working hours, and household debt, but have only small effects on expected spending. We provide correlational and …

Persistent link: https://www.econbiz.de/10012223788

Biases in information selection and processing : survey evidence from the pandemic

Faia, Ester; Fuster, Andreas; Pezone, Vincenzo; Zafar, Basit - 2021

How people form beliefs is crucial for understanding decision-making under uncertainty. This is particularly true in a situation such as a pandemic, where beliefs will affect behaviors that impact public health as well as the aggregate economy. We conduct two survey experiments to shed light on...

Persistent link: https://www.econbiz.de/10012431324

Financial literacy and self-control in FinTech : evidence from a field experiment on online consumer borrowing

Bu, Di; Hanspal, Tobin; Liao, Yin; Liu, Yong - 2020

online consumer debt. Our research design allocates individuals to either a financial literacy treatment, a self …

Persistent link: https://www.econbiz.de/10012181488

Does sophistication affect long-term return expectations? : evidence from financial advisers' exam scores

Kaustia, Markku; Lehtoranta, Antti; Puttonen, Vesa - 2013

We use unique data fromfinancial advisers' professional exam scores and combine it with other variables to create an index of financial sophistication. Using this index to explain long-term stock return expectations, we find that more sophisticated financial advisers tend to have lower return...

Persistent link: https://www.econbiz.de/10010226116

Inflation and trading

Schnorpfeil, Philip; Weber, Michael; Hackethal, Andreas - 2024

We study how investors respond to inflation combining a customized survey experiment with trading data at a time of historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross section and on average too optimistic. Moreover, many...

Persistent link: https://www.econbiz.de/10014536056

Households' response to the wealth effects of inflation

Schnorpfeil, Philip; Weber, Michael; Hackethal, Andreas - 2023

unaware of nominal-debt erosion. Once they receive information on the debt-erosion channel, households update upwards their … beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and … hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once …

Persistent link: https://www.econbiz.de/10014339966

Mental models of the stock market

Andre, Peter; Schirmer, Philipp; Wohlfart, Johannes - 2023

Investors' return expectations are pivotal in stock markets, but the reasoning behind these expectations remains a black box for economists. This paper sheds light on economic agents' mental models - their subjective understanding - of the stock market, drawing on surveys with the US general...

Persistent link: https://www.econbiz.de/10014416010

Narratives about the macroeconomy

Andre, Peter; Haaland, Ingar; Roth, Christopher; … - 2024

We provide evidence on narratives about the macroeconomy-the stories people tell to explain macroeconomic phenomena-in the context of a historic surge in inflation. In surveys with more than 10,000 US households and 100 academic experts, we measure economic narratives in open-ended survey...

Persistent link: https://www.econbiz.de/10015057525

Asset pricing and consumption-portfolio choice with recursive utility and unspanned risk

Kraft, Holger; Seiferling, Thomas; Seifried, Frank Thomas - 2014 - First version: March 6, 2014; this version: June 1, 2014

We study consumption-portfolio and asset pricing frameworks with recursive preferences and unspanned risk. We show that in both cases, portfolio choice and asset pricing, the value function of the investor/representative agent can be characterized by a specific semilinear partial differential...

Persistent link: https://www.econbiz.de/10010359861

Stochastic differential utility as the continuous-time limit of recursive utility

Kraft, Holger; Seifried, Frank Thomas - 2013

We establish a convergence theorem that shows that discrete-time recursive utility, as developed by Kreps and Porteus (1978), converges to stochastic differential utility, as introduced by Duffie and Epstein (1992), in the continuous-time limit of vanishing grid size.

Persistent link: https://www.econbiz.de/10010225872