Tarun Ramadorai

Professor of Financial Economics, London School of Economics

Tarun Ramadorai

Tarun Ramadorai is Professor of Financial Economics at the London School of Economics. His research spans household finance, behavioral economics, real estate, and finance and development, and has earned awards including the Brattle Prize for the best paper in the Journal of Finance and the Jensen Prize for the best paper in the Journal of Financial Economics.

In 2026, Tarun was the AEA-AFA Joint Luncheon Speaker at the American Economic Association / American Finance Association Annual Meetings, delivering a lecture titled “Household Finance In Action.” His book “Fixed: Why Personal Finance Is Broken and How to Make It Work for Everyone,” which brings related themes to a wider audience, was named one of the Financial Times’ Best Books of 2025.

He currently serves as Executive Editor of the Review of Financial Studies. He chaired the Reserve Bank of India’s Inter-Regulatory Committee on Household Finance, has advised policymakers in Europe and India, and served on the Allocation Advisory Board of the Norwegian Sovereign Wealth Fund.

He holds a PhD in Business Economics from Harvard University, an MPhil in Economics from the University of Cambridge, and a BA from Williams College. In addition to LSE, he has spent more than two decades on the faculties of the University of Oxford and Imperial College London.

Research

Working papers

  1. Behavioral lock-in: Housing markets with reference dependent agentsWith Cristian Badarinza, Juhana Siljander, and Jagdish Tripathy2026.
  2. Strategic claim payment delays and denials? Evidence from property and casualty insuranceWith Chotibhak Jotikasthira, Christian Lundblad, and Anastasia Kartasheva2026.Revise and resubmit, Journal of Finance
  3. Finance and tax evasion: Evidence from housingWith Santosh Anagol, Vimal Balasubramaniam, and Antoine Uettwiller2026.
  4. The value of compliance carbon offsets in cap-and-trade marketsWith Aymeric Bellon, Deeksha Gupta, and Federica Zeni2026.
  5. Diffuse bunching with frictions: Theory and estimationWith Santosh Anagol, Allan Davids, and Benjamin Lockwood2026.Code for diffuse bunching estimator
  6. Regulating inaction: The case of price walkingWith Jamie Coen, Daniel Gottlieb, and Alessandro Gavazza2026.Revise and resubmit, Journal of Political Economy
  7. Optimal tax policy with misreporting: Theory, and evidence from real estateWith Santosh Anagol, Vimal Balasubramaniam, Benjamin Lockwood, and Antoine Uettwiller2026.Revise and resubmit, American Economic Journal: Economic Policy
  8. In search of the matching function in the housing marketWith Cristian Badarinza and Vimal Balasubramaniam2026.
  9. Human financial advice in the age of automationWith Fiona Greig, Alberto Rossi, Steve Utkus, and Ansgar Walther2025.Revise and resubmit, Journal of Finance
  10. Housing and fertilityWith Bernardus van Doornik, Dimas Fazio, and Janis Skrastins2025.Best Paper Prize: ISB Summer Research ConferenceBest Paper Prize: Holden Conference in Finance and Real EstateBest Paper Prize: Johns Hopkins Carey Finance Conference

Journal articles

2026

  1. 41.Household finance in retrospect and prospectWith John Y. CampbellJournal of Finance: Insights and Perspectives, forthcoming.
  2. 40.New frontiers in household finance (introduction to special issue)With Francisco Gomes and Michael HaliassosReview of Financial Studies, 39(6), 1557-1579.
  3. 39.Demonetization and under-reporting of economic activity: Evidence from real estateWith Santosh Anagol, Vimal Balasubramaniam, and Antoine UettwillerJournal of Development Economics, 182, 103783.

2025

  1. 38.International dimensions of housing marketsWith Cristian BadarinzaJournal of Economic Perspectives, 39(3), 87-106.
  2. 37.Privacy policies and consumer data extraction: Evidence from U.S. firmsWith Antoine Uettwiller and Ansgar WaltherReview of Finance, 29(5), 1337-1367.

2024

  1. 36.Climate regulation and emissions abatement: Theory and evidence from firms' disclosuresWith Federica ZeniManagement Science, 70(12), 8366-8385.
  2. 35.Refinancing cross-subsidies in the mortgage marketWith Jack Fisher, Alessandro Gavazza, Lu Liu, and Jagdish TripathyJournal of Financial Economics, 158, 103876.Jensen First Prize: Best Corporate Finance Paper, Journal of Financial Economics

2023

  1. 34.Who owns what? A factor model for direct stockholdingWith Vimal Balasubramaniam, John Y. Campbell, and Benjamin RanishJournal of Finance, 78(3), 1545-1591.

2022

  1. 33.Reference dependence in the housing marketWith Steffen Andersen, Cristian Badarinza, Lu Liu, and Julie MarxAmerican Economic Review, 112(10), 3398-3440.
  2. 32.Gravity, counterparties, and foreign investmentWith Cristian Badarinza and Chihiro ShimizuJournal of Financial Economics, 145(2), 132-152.
  3. 31.Predictably unequal? The effects of machine learning on credit marketsWith Andreas Fuster, Paul Goldsmith-Pinkham, and Ansgar WaltherJournal of Finance, 77(1), 5-47.Wharton School-WRDS Best Paper Award in Empirical Finance, Western Finance AssociationBrattle Group First Prize: Best Corporate Finance Paper, Journal of Finance

2021

  1. 30.Privacy, adoption, and truthful reporting: A simple theory of contact tracing applicationsWith Yves-Alexandre de Montjoye, Tommaso Valletti, and Ansgar WaltherEconomics Letters, 198(Art. 109676).
  2. 29.Learning from noise: Evidence from India's IPO lotteriesWith Santosh Anagol and Vimal BalasubramaniamJournal of Financial Economics, 140(3), 965-986.
  3. 28.Household financeWith Francisco Gomes and Michael HaliassosJournal of Economic Literature, 59(3), 919-1000.
  4. 27.Heterogenous taxes and limited risk sharing: Evidence from municipal bondsWith Tania Babina, Pab Jotikasthira, and Chris LundbladReview of Financial Studies, 34(1), 509-568.James A Lebenthal Excellence in Municipal Finance Research Prize

2020

  1. 26.Sources of inaction in household finance: Evidence from the Danish mortgage marketWith Steffen Andersen, John Y. Campbell, and Kasper Meisner-NielsenAmerican Economic Review, 110(10), 3184-3230.Online appendix

2019

  1. 25.The household finance landscape in emerging economiesWith Cristian Badarinza and Vimal BalasubramaniamAnnual Review of Financial Economics, 11, 109-129.
  2. 24.Do the rich get richer in the stock market? Evidence from IndiaWith John Y. Campbell and Ben RanishAmerican Economic Review: Insights, 1(2), 225-240.Online appendix

2018

  1. 23.Endowment effects in the field: Evidence from India's IPO lotteriesWith Santosh Anagol and Vimal BalasubramaniamReview of Economic Studies, 85(4), 1971-2004.Online appendix
  2. 22.Home away from home? Foreign demand and London house pricesWith Cristian BadarinzaJournal of Financial Economics, 130, 532-555.Online appendix
  3. 21.What calls to ARMs? International evidence on interest rates and the choice of adjustable rate mortgagesWith Cristian Badarinza and John Y. CampbellManagement Science, 64(5), 2275-2288.Online appendixInstitutional appendix

2016

  1. 20.International comparative household financeWith Cristian Badarinza and John Y. CampbellAnnual Review of Economics, 8, 111-144.
  2. 19.Volatility risk premia and exchange rate predictabilityWith Pasquale Della Corte and Lucio SarnoJournal of Financial Economics, 120, 21-40.VoxEU article

2015

  1. 18.The impact of hedge funds on asset marketsWith Mathias Kruttli and Andrew PattonReview of Asset Pricing Studies, 5, 185-226.FMA Napa Conference Best Paper PrizeSFS Finance Cavalcade/Review of Asset Pricing Studies Keynote PaperOnline appendix
  2. 17.The impact of regulation on mortgage risk: Evidence from IndiaWith John Y. Campbell and Benjamin RanishAmerican Economic Journal: Economic Policy, 7, 71-102.Online appendixRegulatory appendix
  3. 16.Change you can believe in? Hedge fund data revisionsWith Andrew Patton and Michael StreatfieldJournal of Finance, 70, 963-999.VoxEU article
  4. 15.Trade credit and cross-country predictable firm returnsWith Rui Albuquerque and Sumudu WatugalaJournal of Financial Economics, 115, 592-613.INQUIRE Europe third prize

2014

  1. 14.Levelling the trading fieldWith David Easley and Terry HendershottJournal of Financial Markets, 17, 65-93.

2013

  1. 13.How do foreign investors impact domestic economic activity? Evidence from India and ChinaWith Pab Jotikasthira and Chris LundbladJournal of International Money and Finance, 39, 89-110.
  2. 12.Does one size fit all? The consequences of switching markets with different regulatory standardsWith Tim JenkinsonEuropean Financial Management, 19, 852-886.Best Paper prize. Financial Analysts Journal and CFA Institute
  3. 11.Limits to arbitrage and hedging: Evidence from commodity marketsWith Viral Acharya and Lars LochstoerJournal of Financial Economics, 109, 441-465.Viz Risk Management Best paper prize, European Finance AssociationOnline appendixDownload data
  4. 10.On the high-frequency dynamics of hedge fund risk exposuresWith Andrew PattonJournal of Finance, 68, 597-635.Online appendix
  5. 9.Capacity constraints, investor information, and hedge fund returnsJournal of Financial Economics, 107, 401-416.

2009

  1. 6.Caught on tape: Institutional trading, stock returns, and earnings announcementsWith John Y. Campbell and Allie SchwartzJournal of Financial Economics, 92, 66-91.Download data

2008

  1. 5.Hedge funds: Performance, risk and capital formationWith William Fung, David A. Hsieh and Narayan Y. NaikJournal of Finance, 63, 1777-1803.Finalist for the Smith-Breeden prize
  2. 4.Institutional portfolio flows and international investmentsWith Kenneth A. FrootReview of Financial Studies, 21, 937-972.
  3. 3.What determines transactions costs in foreign exchange markets?International Journal of Finance and Economics, 13, 14-25.

2007

  1. 2.Capacity constraints and hedge fund strategy returnsWith Narayan Y. Naik and Maria StromqvistEuropean Financial Management, 13, 239-256.

2005

  1. 1.Currency returns, intrinsic value and institutional investor flowsWith Kenneth A. FrootJournal of Finance, 60(3), 1535-1566.

Older unpublished papers

  1. Heterogeneous mortgage choice: Evidence from DenmarkWith Steffen Andersen, John Y. Campbell, Joao Cocco, and Chris Hansman2023.
  2. The international CAPM reduxWith Francesca Brusa and Adrien Verdelhan2015.
  3. Long-run discounting: Evidence from the UK leasehold valuation tribunalWith Cristian Badarinza2015.
  4. Getting better or feeling better? How equity investors respond to investment experiencesWith John Y. Campbell and Benjamin Ranish2014.Online appendix
  5. Money for nothing? Understanding variation in reported hedge fund feesWith Michael Streatfield2011.
  6. On the dynamics of hedge fund risk exposuresWith Andrew Patton2010.Has different results from "On the high-frequency dynamics of hedge fund risk exposures" (see above), including searches across conditioning variables, and performance comparisons with other proposed approaches for modelling the dynamics of hedge fund risk exposures.

Book & policy writing

  1. The Indian household finance landscapeWith Cristian Badarinza and Vimal Balasubramaniam. India Policy Forum, volume 13, 2016.Online appendix
  2. Fama, Hansen, and Shiller: Nobelists 2013VoxEU invited article, October 2013.VoxEU article
  3. Institutional investorsIn H. Kent Baker and John Nofsinger (eds.), “Behavioral Finance: Investors, Corporations, and Markets”, Hoboken, NJ: John Wiley & Sons, Inc., October 2010.Book chapter

Household finance report

The report of the Household Finance Committee was released by the Reserve Bank of India on 24 August, 2017. Here are links to the report, the executive summary, and slideshows.
Media coverage of the report
Here are links to summaries of online, broadcast, and print coverage of the report in Indian media.

Media

Earlier coverage, 2012–2022 (76 items)

2020

2017

2016

2015

2014

2013

2012

Code & data

If you use code or data, please cite the associated paper.

  1. Computation package for the diffuse bunching estimatorMatlab code for estimation. The diffuse bunching estimator is derived and described in “Diffuse bunching with frictions: Theory and estimation,” 2025, with Santosh Anagol, Allan Davids and Ben Lockwood.Link to GitHub repositoryWorking paper
  2. Daily institutional flow data: 3329 CRSP permcos for NYSE listed firmsFrom “Caught on tape: Institutional trading, stock returns, and earnings announcements,” 2008, Journal of Financial Economics, 92, 66-91, with John Y. Campbell and Allie Schwartz. Sample begins in 1993, ends in 2000.Download data~120 MB Excel fileJournal article
  3. U.S. oil and gas producers’ aggregate default risk data and microdata on hedging by oil and gas producersFrom “Limits to arbitrage and hedging: Evidence from commodity markets,” 2013, Journal of Financial Economics, 109, 441-465, with Viral Acharya and Lars Lochstoer. README section and micro data.Download data~78 KB Excel fileJournal article
  4. A measure of aggregate hedge fund illiquidity, which predicts returns on multiple underlying asset classesFrom “The impact of hedge funds on asset markets,” 2015, Review of Asset Pricing Studies, 5, 185-226, with Mathias Kruttli and Andrew Patton. Sample begins in 1994:12, ends in 2015:12.Download data~5 KB text fileJournal article

Engagement

Significant non-compensated activities

Current affiliations
2015–Senior Nonresident Fellow, National Council for Applied Economic Research.
2013–Research Fellow, Centre for Economic Policy Research (CEPR). Founding member, CEPR Network on Household Finance.
2012–Senior Academic Fellow, Asian Bureau of Finance and Economics Research.
Past appointments and advisory roles
2022–2024Director, European Finance Association.
2017–2020Governing Council, Society of Financial Studies.
2016–2024Co-Chair, Fintech Workstream, India-UK Financial Partnership (IUKFP).
2016–2017Chair, Inter-Regulatory Committee on Household Finance, Reserve Bank of India.
2012–2014Hon. Advisor, National Institute of Public Finance and Policy, New Delhi.
2012–2013Hon. Advisor, Technical Team, Financial Sector Legislative Reforms Commission, India.
2011–2013Group of Economic Advisors, Committee for Economic and Markets Analysis, European Securities and Markets Authority.
2011–2012Visiting Scholar, Indian Prime Minister’s Economic Advisory Council.

Compensated activities

Excludes honoraria from non-profit institutions including universities, government agencies, and academic journals of £3,000 or less in a given year, and payments from for-profit firms of £1,000 or less in a given year.

Academic year
2025–2026Nil
2024–2025Teaching: EDHEC
2023–2024Nil
Earlier years
2022–2023Nil
2021–2022Asset Management: Norges Bank Investment Management Allocation Advisory Board Member
2020–2021Asset Management: Norges Bank Investment Management Allocation Advisory Board Member
2019–2020Asset Management: Norges Bank Investment Management Allocation Advisory Board Member
Speaking Engagement: KPMG
2018–2019Speaking Engagement: KPMG
Teaching: EDHEC
Teaching: ISB

Contact

The London School of Economics and Political Science
Houghton Street, London WC2A 2AE, United Kingdom
t.ramadorai [at] lse.ac.uk
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