Is Investor Rationality Time Varying? Evidence from the Mutual Fund Industry

We thank Amit Seru for comments on an earlier draft of the paper. We also thank Michael Cooper, Rick Green, Philipp Schnabl, Clemens Sialm, Stijn van Nieuwerburgh, seminar participants at Bank of America, the Interdisciplinary Center Herzliya (IDC), New York University, Tel-Aviv University, Texas A&M University, University of Michigan, University of Texas at Austin, and University of Utah for useful comments. Vincent Glode gratefully acknowledges financial support from the Social Sciences and Humanities Research Council of Canada, the William Larimer Mellon fund, and the Center for Financial Markets. Hollifield thanks National Science Foundation grant 0624351 for support. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the National Science Foundation. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.