Behavioral finance studies the application of psychology to finance, with a focus on
individual-level cognitive biases. I describe here the sources of judgment and decision …

This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first
part of the chapter provides a brief historical account of bubbles and financial crisis. The …

The last several decades have witnessed a shift away from a fully rational paradigm of
financial markets toward one in which investor behavior is influenced by psychological …

Trading in cryptocurrencies grew rapidly over the last decade, dominated by retail investors.
Using data from eToro, we show that retail traders are contrarian in stocks and gold, yet the …

We provide an overview of research on the stock trading behavior of individual investors.
This research documents that individual investors (1) underperform standard benchmarks …

I will start this lecture with some general thoughts on the determinants of long-term asset
prices such as stock prices or home prices: what, ultimately, drives these prices to change as …

This study investigates whether geographic variation in religion-induced gambling norms
affects aggregate market outcomes. We conjecture that gambling propensity would be …

Like many other assets, housing prices are quite volatile relative to observable changes in
fundamentals. If we are going to understand boom-bust housing cycles, we must incorporate …

We construct a long daily panel of short sales using proprietary NYSE order data. From 2000
to 2004, shorting accounts for more than 12.9% of NYSE volume, suggesting that shorting …

A large catalog of variables with no apparent connection to risk has been shown to forecast
stock returns, both in the time series and the cross-section. For instance, we see medium …