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 )
Historically disadvantaged households lose credit access when their state's Senator becomes more politically powerful. Banks connected to these powerful politicians consider fair-lending regulatory guidelines to be less binding.
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
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.
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.
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 Financial Economics. Forthcoming. (w/ Brown and Cookson) [+ bibtex]
Law and Finance Matter: Lessons From Externally Imposed Courts, 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]
Journal of Economic Behavior & Organization. (2014) 107B(11): 527-540. [+ bibtex]
( 02 )
Media Coverage and Trade Publications
"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 )
2019 (includes scheduled)
University of British Columbia
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