Please use this identifier to cite or link to this item:
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:
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
risk aversion
JEL Code(s): D91
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
Affiliation: Economics
Harvard University
University of Sydney

Files in This Item:
File Description SizeFormat 
SEDP-2014-02-Delaney-Fink-Harmon.pdf607.63 kBAdobe PDFView/Open

This item is protected by original copyright

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.