The financial mistakes of households and their social costs.
Forthcoming in the American Economic Review, Professor Raman Uppal's paper entitled "The financial mistakes of households and their social costs", co-written with Professor Harjoat Bhamra.
What their research work shows is that, in addition to the direct benefits of diversification, there are substantial indirect benefits both for individual households and for the aggregate economy. Therefore, encouraging households to hold better-diversified portfolios would not only benefit individual households but also boost economic growth.
Abstract and more on their findings: https://voxeu.org/article/financial-mistakes-households-and-their-social-costs
Raman Uppal is Professor of Finance at EDHEC, and PhD in Finance Programme Academic Director. His main research interest is studying the impact of various frictions on portfolio choice and asset price; he currently teaches a course on Continuous-time Financial Economics in the PhD in Finance programme.