Immense amounts of information are now accessible to people, including information that
bears on their past, present and future. An important research challenge is to determine how …

Errors in probabilistic reasoning have been the focus of much psychology research and are
among the original topics of modern behavioral economics. This chapter reviews theory and …

How do climate risk beliefs affect coastal housing markets? This paper provides theoretical
and empirical evidence. First, we build a dynamic housing market model and show that …

A key question in the literature on motivated reasoning and self-deception is how motivated
beliefs are sustained in the presence of feedback. In this paper, we explore dynamic …

In this paper, we provide a perspective into the main ideas and findings emerging from the
growing literature on motivated beliefs and reasoning. This perspective emphasizes that …

An increase in the household debt to GDP ratio predicts lower GDP growth and higher
unemployment in the medium run for an unbalanced panel of 30 countries from 1960 to …

We commonly think of information as a means to an end. However, a growing theoretical
and experimental literature suggests that information may directly enter the agent's utility …

Behavioral development economics applies theories and ideas from psychology and
behavioral economics to the study of questions in development economics. We begin by …

The rational expectations hypothesis is a bedrock of modern macroeconomics. It is often
combined with a strong, complementary hypothesis that all data about the state of the …

We find evidence of selective exposure to confirmatory information among 400,000 users on
the investor social network StockTwits. Self-described bulls are five times more likely to …