Welcome! I am a PhD Student in Finance at the Hong Kong University of Science and Technology, Business School. My research lies at the intersection of Macro-Finance, Financial Intermediation, and Corporate Finance.
Before joining HKUST, I was a Pre-Doctoral Fellow at the Centre for Advanced Financial Research and Learning at the Reserve Bank of India. I hold an MA in Economics from the Delhi School of Economics and a degree in Civil Engineering from the Vellore Institute of Technology.
Research
Working Papers
New Technologies, Irrational Investors and Herding
with Kaushalendra Kishore
(PDF)
Abstract
This paper develops a rational expectations framework to explain how financial crises can emerge in an economy where some decision-makers are irrational. Investors choose between a new risky asset and a safe asset. Irrational investors always invest in risky assets, whereas rational investors only invest when they are confident enough that the asset holds high value. Investors cannot distinguish whether others' investments stem from private information or irrationality, creating a signal-confounding problem. This may lead uninformed rational investors to herd and invest, even in the absence of informative signals, thus leading to a crisis. Our model explains historical episodes where the advent of new technologies and the presence of novice investors lead to a bubble.