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Worrying about the Stock Market: Evidence from Hospital Admissions

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  • JOSEPH ENGELBERG
  • CHRISTOPHER A. PARSONS

Abstract

Using individual patient records for every hospital in California from 1983 to 2011, we find a strong inverse link between daily stock returns and hospital admissions, particularly for psychological conditions such as anxiety, panic disorder, and major depression. The effect is nearly instantaneous (within the same day) for psychological conditions, suggesting that anticipation over future consumption directly influences instantaneous utility.

Suggested Citation

  • Joseph Engelberg & Christopher A. Parsons, 2016. "Worrying about the Stock Market: Evidence from Hospital Admissions," Journal of Finance, American Finance Association, vol. 71(3), pages 1227-1250, June.
  • Handle: RePEc:bla:jfinan:v:71:y:2016:i:3:p:1227-1250
    DOI: 10.1111/jofi.12386
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