Please use this identifier to cite or link to this item: 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
Authors: 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
I310
Issue Date: 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 or Discussion Paper
URI: http://hdl.handle.net/1893/19612
Affiliation: Economics
Harvard University
University of Sydney

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