We study the relationship between overconfidence and the political and financial behavior of a nationally representative sample. Consistent with theoretical predictions, our findings indicate that excessive confidence in one's judgment is associated with lower portfolio diversification, greater...

We examine the impact of a carbon tax on consumer choices via a large-scale online randomized controlled trial. Higher taxes generally reduce the demand for high-carbon goods. Compared to an import tax, a carbon tax reduces demand when the tax is zero (i.e., announced but not levied) but shows...