Dispositional optimism (and pessimism), wealth, and stock market participation

Grevenbrock, Nils

doi:10.1016/j.joep.2020.102328

Cited by 34 publications

(7 citation statements)

References 16 publications

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“…The values are in the range of values reported in the annual "State of Senior Hunger" for adults aged 60 and older, which report food insecurity rates of 5.2% in 2017 and 4.9% in 2018 (Ziliak & Gundersen, 2019, 2020. The prevalence of food insecurity among older homeowners is lower than is reported for the general population of older adults, which has ranged between 6% and 8% during our sample period from 2006 to 2018 (Ziliak & Gundersen, 2020).…”

Section: Datamentioning

confidence: 50%

“…However, not all wealth is equally accessible to wealth holders (Gundersen & Gruber, 2001). While housing wealth is the primary source of wealth for many older adults (Grevenbrock, 2020), especially for low-income and Black households, it is an illiquid asset. In 2018, about 80% of U.S. older adults owned their home and the median homeowner aged 65 and older had about $143,500 in home equity (JCHS, 2019).…”

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confidence: 99%

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Food insecurity among older adults in the U.S.: The role of mortgage borrowing

Loibl

Rhodes

Moulton

et al. 2021

Applied Eco Perspectives Pol

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Housing wealth is the main source of wealth for many older adults. Using the Health and Retirement Study, we assess the impact of new mortgage borrowing on food insecurity among homeowners aged 65 and older. We find a substantial short‐term effect, with each additional $10,000 borrowed, lowering food insecurity by 2.2 percentage points. In a simulation of the impact of relaxing the debt‐to‐income borrowing constraint, food insecurity is reduced by 2.1 percentage points for previous nonborrowers and by 1.6 percentage points for borrowers. Results support the importance of access to mortgage borrowing to reduce material hardship in older age.

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Section: Datamentioning

confidence: 50%

mentioning

confidence: 99%

Food insecurity among older adults in the U.S.: The role of mortgage borrowing

Loibl

Rhodes

Moulton

et al. 2021

Applied Eco Perspectives Pol

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“…Dispositional optimism interacts with mood to influence the likelihood of taking risky alternative (Grevenbrock, 2020). The degree of optimism and pessimism was measured using the six‐item version of the revised Life Orientation Test.…”

Section: Methodsmentioning

confidence: 99%

What do we really know about “don't know”? Re‐assessing the measurement of financial knowledge

Wilmarth,

Kim,

Pak

2023

Journal of Consumer Affairs

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Survey protocols measuring financial knowledge typically offer a don't know (DK) response option along with factual statements about personal finance. The potential problem of this practice is that a DK response could capture something other than financial knowledge and mislead empirical research on the association between financial knowledge and behavioral outcomes. In this study, we examined whether the current scales are contaminated by systemic personality effects and how reduced validity influences analytical modeling of the knowledge effect. Two studies with different national datasets were conducted in this investigation. Study 1 found that personality types and emotions are partially correlated with the propensity to give a DK response. Study 2 showed that controlling for DK response options alters the association between financial knowledge and behaviors in regression analyses. Our findings suggest that a DK response reduces construct validity of the financial knowledge score.This article is protected by copyright. All rights reserved.

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“…A high love-of-money score reveals one’s favorable attitude toward money. People in positive (negative) moods tend to make optimistic (pessimistic) judgments (Grevenbrock, 2020 ; Johnson & Tversky, 1983 ).…”

Section: Avaricious Monetary Aspiration (The Love Of Money Attitude)mentioning

confidence: 99%

Behavioral economics: who are the investors with the most sustainable stock happiness, and why? Low aspiration, external control, and country domicile may save your lives—monetary wisdom

Tang

Chen

et al. 2022

Asian J Bus Ethics

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Slight absolute changes in the Shanghai Stock Exchange Index (SHSE) corresponded to the city’s immediate increases in coronary heart disease deaths and stroke deaths. Significant fluctuations in the Shenzhen Stock Exchange Index (SZSE) corresponded to the country’s minor, delayed death rates. Investors deal with money, greed, stock volatility, and risky decision-making. Happy people live longer and better. We ask the following question: Who are the investors with the highest and most sustainable stock happiness, and why? Monetary wisdom asserts: Investors apply their deep-rooted values (avaricious love-of-money aspiration and locus of control, Level 2) as a lens to frame critical concerns in the proximal-immediate (Shanghai Stock Exchange Index changes, Level 1) and the omnibus-distal contexts (domicile: city vs. country, Level 2) to maximize expected utility (portfolio changes, Level 1) and ultimate serenity (stock happiness, Level 1). We collected multilevel data—the longitudinal SHSE and 227 private investors’ daily stock happiness and portfolio changes for 36 consecutive trading days in four regions of China. Investors had an average liquid asset of $76,747.41 and $54,660.85 in stocks. This study is not a “one-shot” game with “nothing at stake.” We classified Shanghai and Beijing as the city and Shenzhen and Chongqing as the country. Our cross-level 3-D visualization reveals that regardless of SHSE volatility, investors with low aspiration, external control, and country domicile enjoy the highest and most sustainable stock happiness with minimum fluctuations. Independently, investors with low aspiration, external control, and country domicile tend to make fewer portfolio changes than their counterparts. Behaviorally, less is more, debunking the myth—risky decisions excite stock happiness. Our longitudinal study expands prospect theory, incorporates attitude toward money, and makes robust contributions to behavioral economics and business ethics. We help investors and ordinary citizens make happy, healthy, and wealthy decisions. Most importantly, the life you save may be your own.

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Dispositional optimism (and pessimism), wealth, and stock market participation

Cited by 34 publications

References 16 publications

Food insecurity among older adults in the U.S.: The role of mortgage borrowing

Food insecurity among older adults in the U.S.: The role of mortgage borrowing

What do we really know about “don't know”? Re‐assessing the measurement of financial knowledge

Behavioral economics: who are the investors with the most sustainable stock happiness, and why? Low aspiration, external control, and country domicile may save your lives—monetary wisdom

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