Research

From employee to entrepreneur: The role of unemployment risk

with Ai Jun Hou, Sara Jonsson, Xiaoyang Li

Journal of Financial Economics, 2025. [Link]

Key takeaways: Increased unemployment risk, instead of actual unemployment outcome, causally nudges employees into entrepreneurship. This nudge, however, is not associated with poor ex-post personal income or firm quality.

Media coverage: Swedish House of Finance Research in the Spotlight, DN Debatt, and ESBRI.

Effects of cultural origin on entrepreneurship

with Sara Jonsson

Journal of Economic Behaviour & Organization, 2023. [Link]

Key takeaways: Individuals with stronger cultural risk-taking appetite are more likely to become entrepreneurs, although with poorer firm performance after the transition.

The Fixed Disposition Effect [Job Market Paper] [SSRN]

with Shumiao Ouyang 

Presentations: FMA Asia/Pacific 2025 (scheduled), PhD Nordic Finance Workshop 2025, Stockholm Business School, Experimental Finance 2025 

Abstract: We examine whether the disposition effect—a tendency to sell winners and hold losers—reflects stable investor traits or context-dependent behavior. Using investor-level data from a large-scale trading experiment and matched real-world fund transactions, we document consistent disposition tendencies across settings. We find that both realization preferences and belief-driven trading styles independently contribute to this bias. While nearly all investors show a baseline tendency to realize gains, contrarian investors—who anticipate mean reversion—exhibit significantly stronger disposition effects than momentum traders. A robust discontinuity in selling behavior around zero returns further supports the role of realization utility. By isolating and validating both mechanisms within and across contexts, our study reconciles competing explanations in the literature and reframes the disposition effect as a behavioral trait shaped by heterogeneous beliefs and broadly shared preferences. 

Consumer Demand for Digital Money

with Cameron Peng and Shumiao Ouyang

[Draft coming soon!]

Abstract: We study how consumers respond to interest incentives in digital payment environments by exploiting quasi-random variation in money market fund yields on Alipay’s Yu’ebao platform. Linking over a million user-month observations to user-specific yields, we estimate the elasticity of digital money demand at both extensive and intensive margins. A one-percentage-point increase in yield raises the probability of adoption by 5.6 pp and balances by 27%, largely through net inflows rather than internal reshuffling. Interestingly, we find no detectable response when yields are below 2%, suggesting a salience threshold in consumers’ attention to interest rates. This behavioral nonlinearity implies that interest-bearing digital payment instruments may have limited traction in low-rate environments—a key consideration for central banks contemplating interest-bearing CBDCs. More broadly, our findings highlight how interest incentives shape household financial behavior in digital ecosystems.

In and down: The Costs of Immigrant Investors 

[Preliminary draft available upon request]

Presentations: Luxembourg Household Finance Workshop 2025 (scheduled), PhD Nordic Finance Workshop 2024, BFWG 2024, RBFC 2024

Abstract: This paper examines the portfolio diversification gap between immigrant and native-born investors using a comprehensive administrative dataset from Sweden. Leveraging a carefully matched investor sample, I document that immigrant investors incur a 37% higher return loss compared to natives, driven predominantly by underdiversification instead of high risky share. This gap persists even among second-generation immigrants, suggesting intergenerational disparities in wealth accumulation. I identify two key drivers: social integration and financial literacy. Immigrants with native-born partners or from countries with higher financial literacy levels experience lower return losses. However, merely extending the duration of stay in Sweden does not mitigate the gap. These findings highlight the need for policies that facilitate social integration and promote financial education to improve immigrants’ financial outcomes.

Experiment Participation and Belief Formation 

with Shumiao Ouyang