This study documents how investors extrapolate from recent stock returns of locally headquartered firms when forming beliefs about aggregate stock market outcomes. Consistent with studies on the equity home bias, we find that the responsiveness to local information is a function of proximity....

We examine the effects of broker geography, i.e., the location of a brokerage’s financial advisor workforce, on the geography of retail trading in the stocks that the broker’s analysts cover. We find that retail investors are significantly more likely to trade and own stocks that are covered...

This chapter provides an overview of how digital technologies are transforming the financial services landscape. We highlight the latest in digital financial product and service offerings related to payments and transfers, savings and investments, borrowing, and risk management. We then consider...

The well-documented nonparticipation in the stock market by many households and the highly negative correlation between stock and housing investment are puzzling. We show that stock and housing markets are cointegrated, and thus households significantly increase housing expenditure, reduce stock...

This study investigates why portfolio returns of online banking users are higher than those of non-online users. We first demonstrate that households that are eager to improve their level of financial literacy are more likely to use online banking. Second, a marginal increase in risk appetite...

Using comprehensive auto loan data from Europe, we document a systematic gap in financing terms between Electric Vehicles (EVs) and non-EVs. Compared with the non-electric models within the same family or series, the electric models are financed with a higher interest rate, a lower loan-to-value...

A commonly-accepted retirement goal for a healthy pension is for it to sustain the relatively higher standard-of-living of the latter part of one’s working life throughout retirement. A recent innovation implemented by Brazil in January 2023 might provide a solution to the pension challenges...

I investigate whether one of the reasons for a significant increase in retail trading during Covid-19 lockdown was the substitution of sports betting with stock trading. I find that the number of retail accounts holding stocks in companies based in states where online sports betting has launched...

This paper highlights the importance of financial education and digital literacy in the context of the digitization of the economy. Building on the theoretical grounds established in the literature we use relevant data and statistics from comprehensive studies on financial education, financial...

According to ECB (2023) and European Systemic Risk Board (2022), Swedish owner-occupied housing (OOH) was overvalued by about 55% in 2021q2, the largest overvaluation in the EU and EEA; according to European Commission (2023c), by about 30% in 2022. These assessments affect warnings and...