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Stress and Coping - An Economic Approach

Author

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  • Klaus Wälde

Abstract

We present a psychological model of stress. Appraisal translates stressors into subjective stress. Stress reduces instantaneous utility of an individual directly and via cognitive load. Coping can be under the control of the individual or more automatic. We predict the occurrence of uncontrolled coping .emotional outbursts .as a function of an individual’s theory-consistent personality and environment. We explain when stressors reduce income. We also explain under which conditions rising income does not go hand in hand with rising stress. First steps towards a theory of therapy show how stressed individuals can improve their well-being beyond standard coping measures.

Suggested Citation

  • Klaus Wälde, 2018. "Stress and Coping - An Economic Approach," CESifo Working Paper Series 6966, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_6966
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    More about this item

    Keywords

    stress; coping; personality; controlled vs. automatic reaction; emotional outbursts; income.;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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