We examine whether the decision to participate in the stock market and other related portfolio decisions are influenced by income hedging motives. Economic theory predicts that the market participation propensity should increase as the correlation between income growth and stock market returns...

In contrast to the standard economics theory, an analysis of the Survey of Consumer Finance shows that wealthy investors have a higher return on their stocks than their poorer counterparts. The paper presents a general financial and economic theory of risk and search behavior to address the...

We show that the stock market pricing the presidential margin of victory in a nonlinear concave fashion, with a higher price for medium than slight or crushing victories. We conjecture that the margin of victory reflects president confidence and the ability to execute policies. A small margin...

This paper demonstrates a strong inverse connection between daily stock returns and Congress in session. Our key conjecture is when Congress is in session, more media attention focuses on congressional activity than on the stock market; the more the news attention is political, the lower the...

An analysis of the Survey of Consumer Finance shows that wealthy investors have a higher return on their stocks than their poorer counterparts. Three key empirical facts emerge: (i) wealthy investors employ more productive search efforts, (ii) financial risk bearing and search efforts are...

We develop a parsimonious econometrics methodology to estimate individual's portfolio return process accounting for self-selection bias from portfolio adjustment; our approach is useful to assist investors learning own return process profile. We study three components to characterize investor's...

This study analyzes the financial opportunities that the new Artificial Intelligence (AI) innovation presents. We first present what is AI in finance and then our analysis is broken down into two themes. First, we display the current and projected AI revenue by sector, technology type, and...

Cryptocurrency has become an important part of the investing landscape, arising from a major shift in global payment methods. This book conducts a thorough review of the most important elements that investors need to know about Cryptocurrency, Decentralized Finance (DeFi) and Blockchain,...

This paper examines the effectiveness of interest rate on curbing inflation before and after the year 2000 and show that it varies. Our analyses lay on two main empirical investigations: first, how long it takes for a rate hike of today to start and impact future inflation? and second, does...

This paper analyses household portfolio choice post-bankruptcy using the 2019 Survey of Consumer Finances (SCF) data set. While much work has been done on the determinants of household bankruptcy, the effect of bankruptcy on household investment preferences has received limited attention....