This paper jointly analyzes a behavioral and a cultural concept to explain household debt portfolio choice. The behavioral approach explores the role of time preferences on household debt maturity in a theoretical model and a numerical analysis. We derive a positive relationship between the...

This study proposes an analytical framework towards behavioral political economy of institutional change. It considers institutional changes as central government's choices under uncertainty, which are largely driven by the strategic outcomes in a behavioral coordination game between local...

Investors tend to hold losing stocks too long and sell winning stocks too soon, which is referred to as the disposition effect. Using the trading data from Estonian stock market as well as the laboratory experiments, we find that investment decisions depend on the current performance and the...

We investigate the impact of investor attention, proxied by Google search volume, on target abnormal returns and liquidity measures around M&A announcements. Investor attention slightly increases before and exhibits a sharp incline at the announcement date, with elevated levels of attention...