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http://hdl.handle.net/1893/19612| Appears in Collections: | Economics Working Papers |
| Peer Review Status: | Refereed |
| Title: | Effects of stress on economic decision-making: Evidence from laboratory experiments |
| Author(s): | Delaney, Liam Fink, Gunther Harmon, Colm |
| Contact Email: | liam.delaney@stir.ac.uk |
| Citation: | Delaney L, Fink G & Harmon C (2014) Effects of stress on economic decision-making: Evidence from laboratory experiments. Stirling Economics Discussion Paper, 2014-02. |
| Keywords: | stress financial decisions discounting risk aversion learning |
| JEL Code(s): | D91: Intertemporal Household Choice; Life Cycle Models and Saving I31: General Welfare; Well-Being |
| Issue Date: | 31-Mar-2014 |
| Date Deposited: | 26-Mar-2014 |
| Series/Report no.: | Stirling Economics Discussion Paper, 2014-02 |
| Abstract: | The ways in which preferences respond to the varying stress of economic environments is a key question for behavioral economics and public policy. We conducted a laboratory experiment to investigate the effects of stress on financial decision making among individuals aged 50 and older. Using the cold pressor task as a physiological stressor, and a series of intelligence tests as cognitive stressors, we find that stress increases subjective discounting rates, has no effect on the degree of risk-aversion, and substantially lowers the effort individuals make to learn about financial decisions. |
| Type: | Working Paper |
| URI: | http://hdl.handle.net/1893/19612 |
| Affiliation: | Economics Harvard University University of Sydney |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| SEDP-2014-02-Delaney-Fink-Harmon.pdf | Fulltext - Accepted Version | 607.63 kB | Adobe PDF | View/Open |
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