Dr. Chakravarty's research has encompassed all major areas of finance including asset pricing and derivatives like the options and futures markets, market microstructure, investments, corporate finance, banking, development economics and experimental economics. In the course of leading a consumer focused department, he has analyzed issues related to consumers and banking, attitudes and behaviors, banking relationships, bank switching behavior, consumers’ attitudes to new innovations, and related topics, including experimental economics and understanding consumer behavior within an experimental (i.e., laboratory) setting. Dr. Chakravarty's recent interests also include development finance – especially investigating the various aspects of micro loans and to investigate the role of various incentives in improving loan efficiencies. His work spans theory, empirics, as well as experimental (both lab and field based work).
Dr. Chakravarty's research papers have appeared in the Journal of Finance, the Journal of Financial Economics, the Journal of Financial and Quantitative Analysis, the Journal of Financial Markets, the Journal of Fixed Income, the Financial Management, the Journal of Business, and the Journal of Financial Intermediation, among others. He also serves as an Associate Editor of the Journal of Financial Markets, considered to be one of the top four journals in the finance area.
He is currently engaged in an exciting new project involving a variant of Twitter (at Purdue it is called HotSeat) in examining whether social networking can be used in a meaningful way among students to enhance learning and foster student interaction in large lectures. Through HotSeat, Dr. Chakravarty's students can ask questions or opine on a topic being discussed in real time and start a real interaction with him and the rest of the students in class. The details of his class were written up in the USA Today as well as featured in an article in The Chronicle of Higher Education.