When Paper Losses Get Physical: Domestic Violence and Stock Returns
68 Pages Posted: 21 Jan 2018 Last revised: 13 Oct 2020
Date Written: March 4, 2020
We find a significant negative relationship between stock returns during the week and the reported incidence of domestic violence during the weekend. Our findings suggest that wealth shocks caused by the stock market can affect stress levels within families, escalate arguments, and trigger violence. The effect of stock returns on reported domestic violence is primarily attributable to negative returns, and the incidence of domestic violence increases with the magnitude of loss. The effect also increases with local stock market participation. Using Google search volumes as an alternative proxy for the incidence of domestic violence yields similar results.
Keywords: domestic violence, intimate partner violence, stress, household, behavior
JEL Classification: D03, D14, D62, J12
Suggested Citation: Suggested Citation