Do Good Things Come in Pairs? How Personality Traits Help Explain Individuals’ Simultaneous Pursuit of a Healthy Lifestyle and Financially Responsible Behavior

58 Pages Posted: 2 May 2019

See all articles by Arvid O. I. Hoffmann

Arvid O. I. Hoffmann

University of Adelaide - Business School

Leonora Risse

RMIT University - School of Economics, Finance and Marketing

Date Written: March 13, 2019

Abstract

Both a healthy lifestyle and financially responsible behavior contribute to individual wellbeing and benefit society. Motivated by the fact that both types of behavior involve short-term sacrifices in exchange for uncertain long-term benefits and require self-control, we examine individuals’ consistency in behavior across the health and financial domains. Using a nationally representative dataset of 3,752 employed Australians, we find that the majority of individuals behave in a consistently beneficial or detrimental way across both domains. This behavioral consistency relates to fundamental life outcomes, including physical and mental health, financial prosperity, and life satisfaction. In a new contribution to the literature, we show how personality traits – Locus of Control, the Big Five, Achievement Motivation – have a meaningful role in explaining the simultaneous pursuit of a healthy lifestyle and financially responsible behavior. These behavioral insights can guide policymakers in developing more effective strategies to steer individuals towards beneficial health and financial outcomes.

Keywords: Behavioral Insights, Financial Responsibility, Health Behavior, Household Finance, Personality Traits, Public Policy

JEL Classification: D14, D91, G02, G11, I12

Suggested Citation

Hoffmann, Arvid O. I. and Risse, Leonora, Do Good Things Come in Pairs? How Personality Traits Help Explain Individuals’ Simultaneous Pursuit of a Healthy Lifestyle and Financially Responsible Behavior (March 13, 2019). Available at SSRN: https://ssrn.com/abstract=3367924 or http://dx.doi.org/10.2139/ssrn.3367924

Arvid O. I. Hoffmann (Contact Author)

University of Adelaide - Business School ( email )

10 Pulteney Street
Adelaide, South Australia 5005
Australia

Leonora Risse

RMIT University - School of Economics, Finance and Marketing ( email )

Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
19
Abstract Views
94
PlumX Metrics