Wealth Shocks and Health Outcomes: Evidence from Stock Market Fluctuations

• 成果类型: Article
• 署名作者: Schwandt, Hannes
• 署名单位: Northwestern University; Center for Economic & Policy Research (CEPR)
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20140499
• 发表日期: 2018
• 页码: 349-377
• 关键词: recessions good; lottery prizes; mortality; variables; IMPACT; income; tests

摘要

Do wealth shocks affect the health of elderly in developed countries? 1 exploit the booms and busts in the US stock market as a natural experiment that generated considerable gains and losses in the wealth of stock-holding retirees. Using data from the 1998-2011 Health and Retirement Study, 1 construct wealth shocks as the interaction of stock holdings with stock market changes. These wealth shocks predict wealth changes and strongly affect health. outcomes. A 10 percent wealth loss leads to an impairment of 2-3 percent of a standard deviation in physical health, mental health, and survival rates.