Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2021

We provide causal evidence on one of the most prominent critiques of behavioral finance – that most of the evidence in psychology, which underpins the field, comes from experiments with little at stake for participants. How far do behavioral biases – leading to investment mistakes – get attenu...
Keywords: Behavioural finance, psychology, behavioural biases, Investment
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2015

Do middle-income countries face difficult challenges producing consistent growth? Using transition matrix analysis, we can easily reject any unconditional notion of a “middle-income trap” in the data. However, countries have different fundamentals and policies. Using a non-parametric classificat...
Keywords: Economic growth, Growth determinants, Middle-income trap, Infrastructure, Conditional inference regression tree
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2018

Exploiting the unique institutional setting of Hong Kong’s real estate market, we uncover a curious ripple effect of haunted houses on the prices of nearby houses. Prices drop on average 20% for units that become haunted, 10% for units on the same floor, 7% for units in the same block, and 1% for ...
Keywords: fire sales, Negative spillovers, Haunted houses
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2013

This paper examines the impact of rising transaction tax on trade volume, price volatility and informativeness. We take advantage of a policy change in Singapore that effectively raised the transaction cost for real estate speculators in only one submarket. Based on a difference-indifferences analys...
Keywords: transaction tax, volatility, speculators, informed traders, noise traders
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Annual Conference

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Economic Transformation of Asia

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May 2018

We document the spatial variations of firm-level frictions across cities in China and quantify their macroeconomic implications. Larger and centrally-located cities are less distorted in both the output and the factor market. The firm-level frictions lower the aggregate income by 10.5 percent in 200...
Keywords: Misallocation, regional trade, economic geography, welfare gain
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