Worrying About the Stock Market: Evidence from Hospital Admissions
40 Pages Posted: 10 Mar 2013
Date Written: March 8, 2013
Using individual patient records for every hospital in California from 1983-2011, we find a strong inverse link between daily stock returns and hospital admissions, particularly for psychological conditions such as anxiety, panic disorder, or major depression. The effect is nearly instantaneous (within the same day), suggesting that anticipation over future consumption directly influences instantaneous utility, e.g., Caplin and Leahy (2001). Moreover, the effect of such anticipation is path dependent, being strongest during low volatility regimes, and immediately following low returns.
Keywords: Stock Market, Health
JEL Classification: G02, I10
Suggested Citation: Suggested Citation