Archive
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Working Paper
Working paperRethinking the Role of the Representativeness Heuristic in Macroeconomics and Finance Theory
Dec 2020
Even if psychological factors influence participants’ decision-making, as behavioral economists compellingly argue, incorporating such factors into economic theory would seem to require that market participants adhere to elementary logical rules.
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Working Paper
Working Paper SeriesNew Evidence on the Portfolio Balance Approach to Currency Returns
Feb 2019
Asset markets are indispensable in harnessing society’s diverse views and insights about future business performance. But those views are shaped as much by emotion and crowd mentality as by rational expectations.