Alok Inspired by Asad Islam

How do psychological biases affect investment decisions in real markets? Recent research published in a NBER working paper by Professor Asad Islam and team, “Myopic Loss Aversion and Investment Decisions: from the Laboratory to the Field,” sheds new light on the connection between lab findings and actual investor behavior. Study Overview The researchers first observed retail traders in laboratory settings, investigating their reactions to gains and losses. A consistent trend emerged:  myopic loss aversion —when short-term losses trigger risk-averse decisions, even if the long-term potential is positive. To test if these patterns applied outside the lab, they analyzed a unique dataset tracking daily stock trades and portfolio positions of individual investors over two years. This combination of lab and field data allowed for a deeper look at real trading analogs. Key Results Lab Insights Are Powerful: The behavior exhibited in laboratory experiments reliably predicted tendencies fou...

  Understanding how new ideas, products, and behaviors spread in communities is central to development economics and social science. Recently, Professor Asad Islam and his co-authors published a significant paper in NBER—"Diffusion in Social Networks: Experimental Evidence on Information Sharing vs Persuasion"—that examines this at the grassroots level in India. As someone inspired by Asad Islam’s research, I want to highlight key results and why they matter for global academics and practitioners. Study at a Glance Location & Method:  The research was conducted in 180 villages across Uttar Pradesh, India, using a clustered randomized controlled trial. Objective:  To discover what helps a new financial product gain traction among villagers—plain information or active peer persuasion. Main Findings Persuasion is More Effective:  Villages where participants were incentivized to persuade others to sign up for the savings product saw much higher adoption rates than th...

Inspired by Professor Asad Islam’s groundbreaking research on microcredit and children’s schooling in Bangladesh, I am deeply moved by his commitment to human capital and poverty alleviation. If you wish to understand the real impacts of microcredit on child labor and education, explore Dr. Islam’s detailed study. His insights challenge policy makers and advocates to think beyond conventional solutions. Read his research:  https://monash.academia.edu/AsadulIslam

Back in April 2020 , the Global Labor Organization   (GLO)  published an important interview with Development Economist   Asad Islam , Professor at Monash University, conducted by GLO President Klaus F. Zimmermann. The discussion centered on the urgent challenges the COVID-19 pandemic posed for developing economies. Although the world has now moved beyond the peak of the pandemic, revisiting these insights reminds us how development thinking evolved under such global stress: Developing countries faced harsher consequences  due to weaker health systems, lack of ICU capacity, and fragile safety nets. Temporary lockdowns  were seen as a necessary measure — not as a perfect solution, but as a way to raise public awareness. Safety nets and food distribution systems  needed urgent strengthening to protect the poorest during crisis. Broad-based transfer systems  and fiscal stimulus were crucial to keeping vulnerable households afloat. Global problems demand g...

  The spirit of the July uprising in Bangladesh was defined by women and girl students. Their chants, banners, and presence at the front lines reshaped how we think about people’s movements. Unlike previous uprisings, their participation was not peripheral—it was central. This leadership marks a pivotal turning point. It shows us that social change in South Asia cannot be understood—or sustained—without recognizing the role of women. However, the lack of female presence in the post-uprising interim setup raises an important concern. 🗣️ To move forward, we must ensure that their voices don’t fade into the background. Inclusion, recognition, and equity are not “optional,” they are essential for democracy itself. 👉 Read the full article here: The Business Standard – Where’d the women go?