We build a simple model of self-selection into migration and immigration policy determination. We first show that the effect of any immigration policy can be decomposed into a size and a composition effect. We then explore how the optimal policy may change once the latter effect is considered

We analyze bubbles and crashes in a model in which some investors are partially sophisticated. While the expectations of such investors are endogenously determined in equilibrium, these are based on a coarse understanding of the market dynamics. We highlight how such investors may endogenously...

In this paper, we formalize the view that economic development requires high rates of productive entrepreneurship, and this requires an efficient matching between entrepreneurial talent and production technologies. We first explore the role of financial development in promoting such efficient...

This paper shows that utility differences between the self-employed and employees increase with financial development. This effect is not explained by increased profits but by an increased value of non-monetary benefits, in particular job independence. We interpret these findings by building a...

We explore which financial constraints matter the most in the choice of becoming an entrepreneur. We consider a randomly assigned welfare program in rural Mexico and show that cash transfers significantly increase entry into entrepreneurship. We then exploit the cross-household variation in the...

We exploit account-level data from the Shanghai Stock Exchange to investigate how life-time experiences affect individual investors’ demand for ESG stocks. We show that ESG demand is shaped by economic and non-economic experiences, such as growing up in a region with more pro-social values,...

In an experiment on investors' financial decisions, we find variations in information can induce distinct signals-beliefs-decisions chains within agents. Subjects observe the time series of a risky index and of an additional signal, which helps predict returnsin some randomly chosen rounds, and...