Harvard and Yale researchers win the 22nd annual TIAA Paul A. Samuelson Award.
Named in honor of the late Nobel Prize winner and former CREF trustee, the TIAA Paul A. Samuelson Award For Outstanding Scholarly Writing On Lifelong Financial Security is given annually by the TIAA Institute to recognize an outstanding research publication that helps advance Americans’ lifelong financial well-being.
A panel of distinguished judges selects the award winner and the TIAA Institute announces the winner every year during the annual meeting of the Allied Social Sciences Associations.
Dr. Samuelson is credited with helping turn economics from an academic discipline to problem solving. An example of the principles championed by Dr. Samuelson is a collaboration between James Choi, Yale University and Brigitte Madrian, John Beshears, and David Laibson, Harvard University, for their recent Samuelson award-winning paper “"Does Aggregated Returns Disclosure Increase Portfolio Risk-Taking?"
Prior experiments suggest participants take on more investment risk if they see less frequent returns, portfolio-level (rather than individual asset) returns, or long-horizon (rather than one-year) historical return distributions. In contrast, the authors find such aggregated information does not affect total equity investment when the investment environment is made more realistic than in past studies. Aggregation effects found previously are not robust to changes in the risky asset’s return distribution or to the introduction of a multiday delay between portfolio choice and return realizations.
According to Conrad S. Ciccotello, one of the award judges, "This paper shows the link between information aggregation and risk taking does not hold up under greater scrutiny. The authors offer a new and more robust perspective on how investor behaviors and disclosure policies can impact risk taking and, ultimately, financial security.”