Worrying about the Stock Market: Evidence from Hospital Admissions

2016/02/03 by JOSEPH ENGELBERG, Joseph Engelberg, CHRISTOPHER A. PARSONS +1
Business, Management and Accounting · Health Professions · Economics, Econometrics and Finance · #Financial Literacy, Pension, Retirement Analysis #Global Health Care Issues #Financial Markets and Investment Strategies

paper · pdf · doi:10.1111/jofi.12386

Abstract

ABSTRACT Using individual patient records for every hospital in California from 1983 to 2011, we find a strong inverse link between daily stock returns and hospital admissions, particularly for psychological conditions such as anxiety, panic disorder, and major depression. The effect is nearly instantaneous (within the same day) for psychological conditions, suggesting that anticipation over future consumption directly influences instantaneous utility.

Citations

• Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework
• Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: An Empirical Analysis
• Temporal Resolution of Uncertainty and Dynamic Choice Theory
• Prospect Theory: An Analysis of Decision under Risk
• Giving Content to Investor Sentiment: The Role of Media in the Stock Market

Related

• The Dow is Killing Me: Risky Health Behaviors and the Stock Market
• Does the Stock Market Overreact?
• Market panic on different time-scales
• Associational and plausible causal effects of COVID-19 public health policies on economic and mental distress
• The Stock Market Has Grown Unstable Since February 2018