@TechReport{iza:izadps:dp17120,
            	author={Gorodnichenko, Yuriy and Yin, Xiao},
            	title={Higher-Order Beliefs and Risky Asset Holdings},
            	year={2024},
	month={Jul},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17120},
            	url={https://www.iza.org/publications/dp17120},
	abstract={We combine a customized survey and randomized controlled trial (RCT) to study the effect of higher-order beliefs on U.S. retail investors' portfolio allocations. We find that investors' higher-order beliefs about stock market returns are correlated with but distinct from their first-order beliefs. Furthermore, the differences between the two vary systematically according to investor characteristics. We use information treatments in the RCT to create exogenous differential variations in first- and higher-order beliefs. We find that an exogenous increase in first-order beliefs increases the portfolio share allocated to the stock market (risky assets), while an exogenous increase in higher-order beliefs reduces it.},
	keywords={expectations;surveys;higher-order beliefs;asset pricing},
            }