Optimal stimulus spending during the Great Recession in the United States

Losing Money on the Margin

Journal of Economic Behavior and Organization Margin calls limit the losses of margin-traders. This study shows these induce lower returns with lottery-like skewness. Analyzing Chinese brokerage data, we observe significant losses for margin traders, suggesting a reevaluation of regulation.

May 2019 · Daniel Ladley, Guanqing Liu, James Rockey