Who cares about stock market booms and busts? Evidence from data on mental health

Publication type

Journal Article

Authors

Publication date

June 1, 2015

Summary:

This article investigates the association between stock
market activity and mental well-being, exploiting the availability of interview
dates in the British Household Panel Survey to match changes in the FTSE 100
stock price index to respondents over the period 1991–2008. We present evidence
that annual changes in the price index are associated with better mental
well-being whilst greater uncertainty, proxied by volatility in the price
index, is associated with poorer mental well-being—even after controlling for
macroeconomic conditions. Our findings provide support of a wealth mechanism
and also suggest that the stock market is a barometer of economic prospects
and/or social movements and mood.

Published in

Oxford Economic Papers

Volume and page numbers

Volume: 67 , p.826 -845

DOI

http://dx.doi.org/10.1093/oep/gpv030

ISSN

307653

Subjects

Notes

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