---- Acknowledgments ----
We gratefully acknowledge useful comments and suggestions by Fernando Alvarez, Markus Brunnermeier, Xavier Gabaix, Jacob Sagi, Stavros Panageas, Martin Schneider, Costis Skiadas, Laura Veldkamp, and seminar participants in TSE, Princeton, Yale SOM, NYU Stern, Northwestern Kellogg, Berkeley Haas, NY Fed, HEC Paris, INSEAD, UCSD, UCLA, and in the Miami Behavioral Finance, TIGER, Macro Finance Society, Finance Theory Group, SED, NAMES, European Summer Symposium in Financial Markets (Gerzensee), SITE conferences and NBER Summer Institute. The research leading to these results has received funding from the European Research Council under the European Community's Seventh Framework Programme (FP7/2007-2013) Grant Agreement no. 312503. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.