Worrying About the Stock Market: Evidence from Hospital Admissions

40 Pages Posted: 10 Mar 2013

See all articles by Joseph Engelberg

Joseph Engelberg

University of California, San Diego (UCSD) - Rady School of Management

Christopher A. Parsons

Marshall School of Business, University of Southern California

Date Written: March 8, 2013

Abstract

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

Engelberg, Joseph and Parsons, Christopher A., Worrying About the Stock Market: Evidence from Hospital Admissions (March 8, 2013). Available at SSRN: https://ssrn.com/abstract=2230615 or http://dx.doi.org/10.2139/ssrn.2230615

Joseph Engelberg (Contact Author)

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

Christopher A. Parsons

Marshall School of Business, University of Southern California ( email )

3670 Trousdale Pkwy
Los Angeles, CA 90089
United States

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