Financial capability is an important factor that contributes to consumer financial wellbeing. In the research literature, financial capability has multiple meanings that could refer to financial literacy, financial behavior, financial access, and/or financial outcome, depending on different...

We study the relationship between the labor market for loan officers and access to credit in the residential mortgage market. Using novel data matching the (near) universe of mortgage applications to loan officers, we find that minorities are significantly underrepresented among mortgage loan...

Peer effects can lead to better financial outcomes or help propagate financial mistakes across social networks. Using unique data on peer relationships and portfolio composition, we show considerable overlap in investment portfolios when an investor recommends their brokerage to a peer. We argue...

Autonomy of women in terms of taking decisions in their financial matters is crucial in accelerating empowerment and reducing gender biases. Accessibility to education can enhance and improve women’s ability to question, obtain knowledge and utilize right information. It further can enhance...

Contrary to the current state of research, we find almost complete reinvestment of dividends among the brokerage clients of a German online bank. Yet, investors do not reinvest most dividends immediately after payment. Initially, the bulk of dividends remains parked as cash in investors’...

Title 3 of the Credit Card Accountability, Responsibility, and Disclosure Act (2009) limited the marketing and sale of credit cards to college students, nudging them away from these high-rate products. While it reduced card use, we find the nudge also raised student loan balances by 8.4%, 15%...

Previous studies document a relationship between gambling at the aggregate level and investments in securities with lottery-like features. We combine data on individual gambling consumption with portfolio holdings and trading records to examine whether gambling and trading act as substitutes or...

We survey retail investors at an online bank to study beliefs about the autocorrelation of aggregate stock returns, and how these beliefs shape investment decisions measured in administrative account data. Individuals' beliefs exhibit substantial heterogeneity and predict trading responses to...

Most financial advisors recommend storing three to six months of expenses in liquid assets in case of an emergency. Yet we estimate that more than half of U.S. families do not have at least three months of their non-discretionary expenses in liquid savings. We find that financial literacy is...

I study a real-options model where the investor computes the value of a project (VOP) from available data. In the process, she makes mistakes, as she suffers from over-confidence and inference biases. I study how the optimal investment rule and timing depend on investors' biases. I show that the...