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Swedish House of Finance
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Paolo Sodini

Paolo Sodini is Professor of Finance at the Stockholm School of Economics and fellow at the Swedish House of Finance. He is the director of MiDa – the Institute for Micro Data at SSE and SHoF and one of the founders of the European Network of Household Finance. His research focuses on Household Finance, the field of Financial Economics that studies how households use financial markets to achieve their goals. He has studied the welfare consequences of household financial mistakes, such as portfolio diversification and rebalancing, and the importance of sophistication in limiting financial losses. He has also worked on the determinants of welfare inequality, in particular of the role of savings, financial risk taking and returns to wealth. His latest research focuses on real estate markets and explores the impact of homeownership on household economic behavior and gender differences in the housing market.

He has published in top economics and finance journals such as the Journal of Political Economy, the American Economic Review, the Quarterly Journal of Economics and the Journal of Finance. Sodini has been teaching Fixed Income and Investment at Bachelor, Master and Executive level. Currently he is teaching “Household Finances and Wealth Management” in the SSE MSc in Finance, and is the director of the SSE Phd course in “Household Finance”.

Education: PhD, Massachusetts Institute of Technology

 

Selected Publications

Can Security Design Foster Household Risk-Taking?, with Laurent E. Calvet, Claire Celerier and Boris Vallee. Journal of Finance, Forthcoming, 2022

Rich Pickings? Risk, Return, and Skill in Household Wealth, with L. Bach and L. Calvet, American Economic Review. vol. 110, pp. 2703-47, 2022

Who are the Value and Growth Investors?, with S. Betermier and L. Calvet. Journal of Finance, vol 72, pp. 5-46, 2017

Twin Picks: Disentangling The Determinants of Risk Taking in Household Portfolios, with Laurent Calvet . Journal of Finance, vol 69, pp. 867-906, 2014

Household Finance: an Emerging Field. Handbook of the Economics of Finance, with Luigi Guiso, edited by Constandinides, G., M. Harris and R. Stulz, Elsevier, 2013

Fight or Flight? Portfolio Rebalancing by Individual Investors, with L. Calvet and J. Campbell, Quarterly Journal of Economics, Vol. 124 No. 1 pp. 301-348, February 2009

Down or Out: Assessing The Welfare Costs of Household Investment Mistakes, with L. Calvet and J. Campbell, Journal of Political Economy, Vol. 115 No. 5 pp. 707-747, October 2007 (lead article)

Contact information

Researcher, Swedish House of Finance

25th Anniversary Professor of Finance, Department of Finance, SSE

Director of MiDa – the Institute for Micro Data at SSE & SHoF

paolo.sodini@hhs.se

Curriculum Vitae

Teaching

Publications

Working Papers

SSRN Page

Field of research

Household Finance

Executive summaries

Twin Picks: Disentangling the Determinants of Risk- Taking in Household Portfolios

The Only 'Free Lunch' in Finance

As the infamous saying goes - in life there are no ‘free lunches’. What about in finance?

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An important piece of Swedish history

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Seduced by data

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