SGH Warsaw School of Economics invites for a lecture on „Political Cognitive Biases” by Prof. Marian Moszoro from George Mason University, Department of Economics and Interdisciplinary Center for Economic Science.
When: June 9, 2017 (Friday) at 3:20 - 5:00 pm.
Where: SGH, building C (Al. Niepodleglosci 128) - room C-4a
Who does a better job of managing money: Republicans or Democrats? Under rational agent hypothesis, financial industry practitioners should not be affected by political discourse, and investors cannot realize abnormal returns on publicly available information. Rare events, however, produce polarized narratives that go viral and potentiate cognitive dissonance on a spectrum of agents. We assembled a comprehensive dataset of equity hedge funds performance and matched the managers’ political affiliation by their partisan contributions. We document higher returns of funds managed by Democrats for 10 subsequent months—from December 2008 to September 2009. This result is unique and robust to placebo time windows and random partisan affiliation shuffling. We conjecture that the conjunction of the financial crisis, Obama’s election, and politically polarized interpretation of the US central bank policy during that period had an asymmetric impact on hedge fund managers’ perception. In other periods, when the political discourse did not involve central bank policy, there was no statistically significant difference in fund managers performance depending on their political beliefs.
Marian Moszoro was born in Rosario, Argentina. In 2005-2006 he was Undersecretary of State, Deputy Minister of Finance of Poland. He graduated from SGH – Warsaw School of Economics (PhD, 2004) and the Haas School of Business, University of California, Berkeley (Post-doc, 2009-2011). He held academic positions at the Haas School of Business, University of California, Berkeley, Harvard Law School, and Université Paris-Dauphine. Currently (2017), Dr. Moszoro is a professor at George Mason University’s Department of Economics and the Interdisciplinary Center for Economic Science, and a faculty affiliate at Cornell University's Program in Infrastructure Policy. Dr. Moszoro served as consultant to the World Bank, UNIDO, and several companies.
Prof. Moszoro’s dissertation on public-private partnerships was published as a monograph with two editions. He has authored several books, scientific articles, and case studies. His areas of research are: law & economics and positive political economy, corporate and project finance, and public-private partnerships.
All students and professors are kindly invited to participate in the lecture as well as in the questions and answers session afterwards.