Portfolio Choice and Mental Health

Review of Finance, Vol. 17, No. 3, 2013

44 Pages Posted: 16 Nov 2009 Last revised: 11 Sep 2014

See all articles by Vicki L. Bogan

Vicki L. Bogan

Cornell University

Angela R. Fertig

University of Minnesota - Twin Cities

Date Written: February 1, 2012


Close to 30 percent of the U.S. population experiences at least one mental or substance abuse disorder each year. Given the prevalence of mental health issues, this paper analyzes the role of mental health and cognitive functioning in household portfolio choice decisions. Generally, we find that households affected by mental health issues decrease investments in risky instruments. Various mental health issues can reduce the probability of holding risky assets by up to 19 percent. Moreover, single women diagnosed with psychological disorders increase investments in safe assets. We also find that cognitive functioning issues are associated with an increase in financial assets devoted to retirement accounts.

Keywords: Portfolio choice, mental health, household decisions

JEL Classification: G11, I10

Suggested Citation

Bogan, Vicki L. and Fertig, Angela R., Portfolio Choice and Mental Health (February 1, 2012). Review of Finance, Vol. 17, No. 3, 2013. Available at SSRN: https://ssrn.com/abstract=1507190 or http://dx.doi.org/10.2139/ssrn.1507190

Vicki L. Bogan (Contact Author)

Cornell University ( email )

Warren Hall
Ithaca, NY 14853
United States
607-254-7219 (Phone)

Angela R. Fertig

University of Minnesota - Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

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