Rawley Heimer studies individuals' financial decisions in risky asset markets and conventional debt markets. Some of his research shows that social networks and low probability events are crucial in developing distorted beliefs, leading to trading mistakes and other costly financial errors. He also studies how political and legal institutions affect households' access to credit.
( 01 )
Review of Financial Studies. (2017) 30(3): 1019-1051. (w/ Brown and Cookson) [+ bibtex]
Winner of Best Paper Award in Financial Markets and Institutions at FMA Annual Meetings
Review of Financial Studies. (2016) 29(11): 3177-3209. [+ bibtex]
Using data and an experiment, we show that the ability to borrow (use leverage to trade assets) causes systematic trading mistakes -- worse market timing and a greater disposition effect. These findings are consistent with dynamic models of Cumulative Prospect Theory with realization utility.
Shocks to personal wealth increase self-employment rates by extending existing self-employment spells and not by workers leaving salaried employment. Wealth shocks allow individuals to enjoy the non-pecuniary benefits of self-employment.
Conferences: NBER Entrepreneurship, HEC Paris Entrepreneurship Workshop, ITAM Finance Conference
Invited for submission at RFS via Yale-RFS Conference on Real and Private-Value Assets
R&R: Review of Financial Studies
People systematically deviate from their risk-taking strategies when confronted with sequences of gambles. We present evidence from modifications to traders' limit orders and a series of pre-registered laboratory experiments.
Conferences: NBER Behavioral Finance, BEAM, SFS Cavalcade, EFA
Consumers residing in gerrymandered Congressional districts have lost access to credit over the past two decades. Political redistricting can disenfranchise voters, thereby reducing politicians' incentive to advocate for goods and services for their constituents.
Media: NPR Morning Edition
 Shale Shocked: The Long-run Effect of Wealth on Household Debt
We trace out the effect $14.6 billion in royalty payments from the oil and fracking boom over 11 years on consumer credit outcomes. These payments help sub-prime consumers pay-down revolving debt and complement the demand for installment credit by prime consumers.
 Uncertainty Shocks and Personal Investment: Evidence from a Global Brokerage
Using several proposed empirical uncertainty shocks, we document heterogeneous effects on personal investment behavior. Uncertainty shocks do not affect own-trading but have large and heterogeneous effects on delegation. Asset manager's popularity and cultural distance matter for investors' response to heightened uncertainty.
Other Publications and Lightly-refereed Research
Federal Reserve Bank of Cleveland Working Paper Series, (2015) No. 1522. (w/ Simon) [+ bibtex]
Traders use online social networks to broadcast their extreme investing victories. Followers in the social network thereby overestimate the performance of active strategies.
Journal of Economic Behavior & Organization. (2014) 107B(11): 527-540. [+ bibtex]
( 02 )
Media Coverage and Trade Publications
“Are ETFs safe... for retail investors?” MarketWatch
“Academic focus limits business schools’ contribution to society,” Financial Times
“Amateur Investors Are Making Risky Bets That Could Wipe Them Out,” Bloomberg News
“Should Retail Investors’ Leverage Be Limited?” Harvard Law School Forum on Corporate Governance and Financial Regulation
“Retail investor leverage and speculation,” VoxEU
"In Gerrymandered Districts, Constituents Likely To Lose Economic Security," NPR Morning Edition
“Behavioral Economics Isn’t Dead Yet,” Bloomberg
“Shifting Gears From Saving to Spending in Retirement,” Kiplinger and Yahoo Finance
“Swimming with Sharks: Is our fear of sharks causing us to undersave?” Project M (Allianz)
“YOLO: Mortality Beliefs and Household Finance Puzzles,” Retirement Income Industry Association, Webinar
“YOLO: Mortality Beliefs and Household Finance Puzzles,” 2016 annual Academic Forum of the Defined Contribution Institutional Investment Association (DCIIA) at Goldman Sachs
“YOLO: Mortality Beliefs and Household Finance Puzzles,” International Center for Pension Management (ICPM) Discussion Forum
“Cracks in the Anti-Behavioral Dam?” Noahpinion Blog
"More power for US politicians reduces credit in their states," Central Banking
“Currency Trading: Learn From Your Losses,” Wall Street Journal, Intelligent Investor
( 03 )
2020 (includes online and canceled)
NBER Behavioral Finance‡, SFS Cavalcade Chapel Hill (x2)‡, EFA Helsinki, FIRS Budapest‡, Yale-RFS Conference on Real and Private-Value Assets*, ITAM Finance Conference*, CFIC‡, Conference in Behavioral Finance and Decision Making (Chicago Booth)‡, MFA‡, BEAM*
ASU, Copenhagen Business School, Iowa, Iowa State, LBS, UBC, USC
AFA Atlanta (presenting and †), EFA Lisbon (* and †), FIRS Savannah, NFA, Duke/UNC Corporate Finance, Cornell Biennial Household and Behavioral Finance Symposium*, University of Kentucky Finance Conference, Helsinki Finance Summit*, Colorado – Boulder Summer Conference on Consumer Financial Decision Making, Experimental Finance Conference, ANU-RSFAS Research Camp (presenting and †), Marstrand Finance Conference*, Telfer Conference on Accounting and Finance*, Finance UC Conference of Pontificia Universidad Catolica de Chile*, Frontiers of Finance Conference*, Labor and Finance Group Conference (Chicago Booth)*, NBER Entrepreneurship*, HEC Paris Entrepreneurship Workshop*, KWC Conference on Entrepreneurial Finance*, Wash U Corporate Finance Conference*, TAU Finance Conference*, ITAM Finance Conference†, Oregon Summer Finance Conference†
Cornell, FRB – Kansas City, Notre Dame, University of Kansas, University of San Diego
AFA Philadelphia*, SFS Cavalcade Yale (x2), FIRS Barcelona, 8th Helsinki Finance Summit on Investor Behavior, Finance UC Conference of Pontificia Universidad Catolica de Chile, Political Economy of Finance Conference - Chicago Booth, ESSFM (evening session), Colorado - Boulder Conference on Consumer Financial Decision Making*, 28th Annual Meeting of the American Law and Economics Association, MFA*, EFA Warsaw†, FSU SunTrust Conference†, UBC Winter Finance Conference†
Boston College, Brandeis, Chinese University of Hong Kong, Georgetown, HKUST, Melbourne, Oklahoma, Sydney, UNSW
WFA (x2 and †), SFS Cavalcade Nashville (x2), EFA Mannheim*, ASU Winter Finance Conference, IDC Herzliya - 14thAnnual Conference in Financial Economics Research*, CEPR Spring Symposium in Financial Economics*, NFA*, 5th Annual Asian Bureau of Finance and Economic Research*, 27th Annual Meeting of the American Law and Economics Association*, Finance UC Conference of Pontificia Universidad Catolica de Chile*, AEAs†, FMA†
Florida, Georgia, Maastricht, Ohio State, Rochester, Texas A&M, Tilburg, WUSTL
AFA San Fran, NBER – SI (HF), EFA Oslo*, European Winter Finance Conference, IDC Herzliya - 13thAnnual Conference in Financial Economics Research, U. Washington Summer Conference, ITAM Finance Conference, TAU Finance Conference, Colorado – Boulder Summer Conference on Consumer Financial Decision Making, FDIC Consumer Research Symposium, MFA, FMA, IBEFA Summer Meeting, Netspar International Pension Workshop, Miami Behavioral Finance Conference*, UC Davis GSM Behavioral/Household Finance Conference*, Edinburgh Conference on Legal Institutions and Finance*, Society for Economic Dynamics*, NFA*, CESifo Applied Microeconomics*, Society for Institutional & Organizational Economics*, Research in Behavioral Finance Conference*, Mid-Atlantic Research Conference†
Colorado – Boulder, Cubist Systematic Strategies, Drexel, Houston (Econ), Indiana, Kentucky, LMU – Munich, Miami
AFA Boston, EFA Vienna, FIRS Iceland*, SFS Cavalcade Atlanta, NBER – SI (DAE), FRA Early Ideas, NFA (x2), MFA (x2), FMA (x2), Colorado – Boulder Consumer Finance, CESifo Macroeconomics and Survey Data, FRB –SF/IBEFA Day Ahead Conference, Quadrant Asset Management Investment Conference, ABCDE World Bank Development Conference Mexico City*, CESifo Behavioral Economics*, Paris December Finance Meeting*, Cleveland Fed Household Economics*, Oregon Summer Finance Conference†
FRB – Atlanta, Oregon State (Econ)
EFA Lugano, FRA Early Ideas*, EFIC*, CFEA, Colorado – Boulder Consumer Finance, NFA
Baruch CUNY, Cincinnati, FRB – Board, FRB – Cleveland, Office of Financial Research, Ohio State, SEC, Western University
AFA San Diego, Center of Complex Networks Research, Colorado – Boulder Consumer Finance
FRB – Philadelphia, Brandeis, Central Bank Microstructure Conference – Norway, FMA (x2)
* presentation by co-author; † discussion