'O Sole Mio: An Experimental Analysis of Weather and Risk Attitudes in Financial Decisions
38 Pages Posted: 12 Nov 2011 Last revised: 30 Nov 2013
Date Written: November 23, 2012
Abstract
While weather has been shown to affect financial markets and financial decision making, a still open question is the channel through which such influence is exerted. By employing a multiple price list method, this paper provides direct experimental evidence that sunshine and good weather promote risk taking behavior. This effect is present whether relying on objective measures of meteorological conditions or subjective weather assessments. Finally, employing a psychological test, we find evidence that weather may affect individual risk tolerance through its effect on mood.
Keywords: Experiments, Risk Aversion, Weather, Sunshine
JEL Classification: C91, D03, G02
Suggested Citation: Suggested Citation
Register to save articles to
your library
Recommended Papers
-
Winter Blues: A Sad Stock Market Cycle
By Mark J. Kamstra, Lisa A. Kramer, ...
-
The Halloween Indicator, 'Sell in May and Go Away': Another Puzzle
By Ben Jacobsen and Sven Bouman
-
Losing Sleep at the Market: The Daylight-Savings Anomaly
By Mark J. Kamstra, Lisa A. Kramer, ...
-
Are Investors Moonstruck? - Lunar Phases and Stock Returns
By Lu Zheng, Kathy Yuan, ...
-
Lunar Cycle Effects in Stock Returns
By Ilia D. Dichev and Troy D. Janes
-
Rain or Shine: Where is the Weather Effect?
By Ning Zhu and William N. Goetzmann
-
Rain or Shine: Where is the Weather Effect?
By Ning Zhu and William N. Goetzmann
-
Rain or Shine: Where is the Weather Effect?
By William N. Goetzmann and Ning Zhu
-
By Ben Jacobsen and Wessel Marquering
