Written on 01 April 2019.
”Encouraging households to hold better-diversified portfolios would not only benefit individual households but also boost economic growth”.
Professor Raman Uppal's article entitled "The financial mistakes of households and their social costs", co-written with Professor Harjoat Bhamra has just been published in the American Economic Review, VOL.109, NO. 3, March 2019
Access the article: https://www.aeaweb.org/articles?id=10.1257/aer.20161076
Their findings demonstrate that financial markets are not a mere sideshow to the real economy and that improving the financial decisions of households can lead to large benefits, not just for individual households, but also for society.