Marshall Bridge Building

Faculty Research Fair 2022: David Hirshleifer

The Robert G. Kirby Chair in Behavioral Finance, Professor of Finance and Business Economics

March 08, 2022

David Hirshleifer

David Hirshleifer, Ph.D.

The Robert G. Kirby Chair in Behavioral Finance, Professor of Finance and Business Economics

Hirshleifer, who served as President of the American Finance Association in 2019 and has been editor of the Journal of Financial Economics and Review of Financial Studies, has made seminal contributions to several areas in academic finance and economics, and is considered a world leader in social and behavioral finance. His academic record, with some 80 peer-reviewed articles garnering nearly 12,000 SSCI and over 50,000 Google scholar citations, places him in the highest echelons of the profession.

Before joining the Marshall faculty, Hirshleifer was the Merage Chair in Business Growth and Distinguished Professor of Finance and Economics at the Paul Merage School of Business, University of California, Irvine. In addition to UCI, he was a tenured faculty member in the UCLA Anderson School of Management and held endowed-chaired positions at the University of Michigan Ross School of Business and the Ohio State University Fisher College of Business.

Hirshleifer earned his bachelor’s degree in mathematics from UCLA, and his masters and Ph.D. in economics from the University of Chicago.

Research Fair Presentation Summary

Social Transmission Bias in Economics and Finance

I discuss an intellectual paradigm shift, social economics and finance: the study of the social processes that shape economic thinking and behavior. This emerging field recognizes that people observe and talk to each other. A key, underexploited building block of social economics and finance is social transmission bias: a systematic shift in the content of the information signals or ideas that people end up with when these are conveyed by social transactions. I describe new insights provided by the social transmission bias approach. For example, social transmission bias compounds as it passes from person to person, which can help explain booms, bubbles, return anomalies, and swings in economic sentiment.