Behavioral Finance

Harvard FAS

This junior seminar will provide an overview of theoretical and empirical research on asset pricing that adopts a “behavioral” perspective, i.e. that considers the joint consequences of: (i) investors who have either less than fully rational beliefs or non-standard preferences; and (ii) various impediments to arbitrage. We will also spend considerable time fleshing out the implications of investor sentiment for corporate finance, macroeconomics, and public policy.