The Impact of Stock Market Fluctuations on the Mental and Physical Well‐being of Children

Cotti, Chad; Simon, Dávid

doi:10.1111/ecin.12528

Cited by 20 publications

(10 citation statements)

References 45 publications

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“…Our paper is related to several strands of literature. One strand has identified a relationship between stock returns and physical and mental health (McInerney et al, 2013;Cotti et al, 2015;Engelberg and Parsons, 2016;Cotti and Simon, 2018;Schwandt, 2018), as well as subjective and emotional (worry, stress, anger) well-being (Deaton, 2012;Frijters et al, 2015;Ratcliffe and Taylor, 2015). We contribute to this literature by providing evidence that stock market fluctuations can have an impact on investors' health status through its effect on the likelihood of being involved in a driving accident.…”

Section: Introductionmentioning

confidence: 94%

When the market drives you crazy: Stock market returns and fatal car accidents

Giulietti

Tonin

Vlassopoulos

2020

Journal of Health Economics

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The stock market influences some of the most fundamental economic decisions of investors, such as consumption, saving, and labor supply, through the financial wealth channel. This paper provides evidence that daily fluctuations in the stock market have important -and hitherto neglected -spillover effects in another, unrelated domain, namely driving. Using the universe of fatal road car accidents in the United States from 1990 to 2015, we find that a one standard deviation reduction in daily stock market returns is associated with a 0.5% increase in the number of fatal accidents. A battery of falsification tests support a causal interpretation of this finding. Our results are consistent with immediate emotions stirred by a negative stock market performance influencing the number of fatal accidents, in particular among inexperienced investors, thus highlighting the broader economic and social consequences of stock market fluctuations. JEL-Codes: D910, R410, G410. for very useful comments and discussions, as well as seminar participants at Southampton and Bolzano. We also thank Xiaocheng Hu and Abu Siddique for excellent research assistance.

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Section: Introductionmentioning

confidence: 94%

When the market drives you crazy: Stock market returns and fatal car accidents

Giulietti

Tonin

Vlassopoulos

2020

Journal of Health Economics

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“…Three other studies have considered child or adolescent health outcomes in relation to economic conditions. Cotti and Simon use survey data from 2004 to 2012 and estimate the relationship between stock market prices and child health outcomes, finding that child health worsens when stock prices rise (Cotti & Simon, ). Currie and Tekin use administrative hospital data from four states between 2005 and 2009 to estimate the relationship between home foreclosures and hospitalizations, including admissions for psychiatric diagnoses (Currie & Tekin, ).…”

Section: Introductionmentioning

confidence: 99%

How do economic downturns affect the mental health of children? Evidence from the National Health Interview Survey

2019

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Research linking economic conditions and health often does not consider children's mental health problems, which are the most common and consequential health issues for children and adolescents. We examine the effects of unemployment rates and housing prices on well‐validated child and adolescent mental health outcomes and use of special education services for emotional problems in the 2001–2013 National Health Interview Survey. We find that the effects of economic conditions on children's mental health are clinically and economically meaningful; children's mental health outcomes worsen as the economy weakens. The effects of economic conditions on child and adolescent mental health are pervasive, found in almost every subgroup that we examine. The use of special education services for emotional problems also rises when economic conditions worsen. Our analyses of possible mechanisms that link economic conditions to child mental health suggest that parental unemployment cannot fully explain the relationship between economic conditions and child mental health.

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“…Moreover, in the US, Cotti and Simon (2018) employed cross-sectional data for the period spanning 2004-2012 to estimate that declines in the stock market negatively impacted child health and hospitalizations.…”

Section: International Experiencesmentioning

confidence: 99%

Economic recession, parental unemployment and adolescents’ health-related quality of life and mental health outcomes in Greece

Drydakis

2022

Southeast European and Black Sea Studies

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This study examines whether an association exists between parental unemployment and health-related quality of life and mental health for adolescents aged 15-18 in Athens, Greece. The gathered dataset covers the same upper high schools in two periods, 2011-2013 and 2017-2019. The study finds that parental unemployment bears an association with decreased health-related quality of life and increased adverse mental health symptoms for adolescents. Moreover, the 2011-2013 period, a period of increased parental unemployment, saw a decrease in health-related quality of life and increased adverse mental health symptoms for adolescents. In addition, parental unemployment proved more detrimental to adolescents' health-related quality of life and mental health in 2011-2013 than in 2017-2019. The present research ranks among the first studies to examine whether parental unemployment could be associated with worse health-related quality of life and mental health for adolescents during periods of increased parental unemployment. Public policies that can reduce the adverse effects of parental unemployment on adolescents' health-related outcomes require consideration. This approach proves critical because deteriorated health-related quality of life and mental health can negatively impact on adolescents' human capital, progression, income, and future health.

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The Impact of Stock Market Fluctuations on the Mental and Physical Well‐being of Children

Cited by 20 publications

References 45 publications

When the market drives you crazy: Stock market returns and fatal car accidents

When the market drives you crazy: Stock market returns and fatal car accidents

How do economic downturns affect the mental health of children? Evidence from the National Health Interview Survey

Economic recession, parental unemployment and adolescents’ health-related quality of life and mental health outcomes in Greece

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