The Power of Love: Emotional Support and Financial Hardship

42 Pages Posted: 10 Apr 2021 Last revised: 5 May 2021

See all articles by Da Ke

Da Ke

University of South Carolina - Department of Finance

Date Written: March 24, 2021

Abstract

Using microdata from two complementary U.S. household surveys, I document that individuals who lack emotional support from family and friends are more likely to experience financial hardship. This pattern is substantially stronger for women as well as for those prone to anxiety and depression. Further evidence suggests a belief-based channel through which emotional support improves financial preparedness for potential adverse shocks. Overall, these findings underscore the importance of the psychological dimension of social networks in shaping household financial outcomes.

Keywords: emotional support, financial hardship, social networks

JEL Classification: D91, G4, G5

Suggested Citation

Ke, Da, The Power of Love: Emotional Support and Financial Hardship (March 24, 2021). Available at SSRN: https://ssrn.com/abstract=3811231 or http://dx.doi.org/10.2139/ssrn.3811231

Da Ke (Contact Author)

University of South Carolina - Department of Finance ( email )

1014 Greene Street
Columbia, SC 29208
United States

HOME PAGE: http://www.dakefinance.com

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