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Does the market make us happy? The stock market and well-being

Author

Listed:
  • Aurora Murgea

    (Department of Finance, Faculty of Economics and Business Administration, West University of Timisoara, Romania)

  • Robert Reisz

    (Institut für Hochschulforschung an der Martin Luther Universität Halle Wittenberg, Germany
    Department of Informatics, Faculty of Matematics and Informatics, West University of Timisoara, Romania)

Abstract

The present paper studies the relationship between well-being and the stock market in the USA. We find that there is a relationship between well-being and the capital market. Empirical tests, using the Gallupp Healthways Well-being Index, Standard&Poor’s S&P 500 and the VIX volatility index show a strong and statistically significant impact of the stock market on well-being.

Suggested Citation

  • Aurora Murgea & Robert Reisz, 2012. "Does the market make us happy? The stock market and well-being," FEAA Working Papers 2012.FEAA.F.03, West University of Timisoara, Romania, Faculty of Economics and Business Administration.
    • Handle: RePEc:wun:wpaper:2012.feaa.f.03
    Note: PLEASE DO NOT QUOTE THIS PAPER WITHOUT AUTHOR’S PERMISION
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    File URL: http://www.feaa.uvt.ro/fisiere/working-papers/2012.FEAA.F.03.pdf
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    References listed on IDEAS

    as
    1. Ng, Yew-Kwang, 1997. "A Case for Happiness, Cardinalism, and Interpersonal Comparability," Economic Journal, Royal Economic Society, vol. 107(445), pages 1848-1858, November.
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    1. The stock market and happiness
      by UDADISI in UDADISI on 2012-08-01 23:55:00

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    Cited by:

    1. Anita Ratcliffe & Karl Taylor, 2015. "Who cares about stock market booms and busts? Evidence from data on mental health," Oxford Economic Papers, Oxford University Press, vol. 67(3), pages 826-845.
    2. Tonzer, Lena, 2017. "Uncertainty, financial crises, and subjective well-being," IWH Discussion Papers 2/2017, Halle Institute for Economic Research (IWH).
    3. Anita Ratcliffe & Karl Taylor, 2013. "Who Cares about Stock Market Booms and Busts? Evidence from Data on Mental Wellbeing," Working Papers 2012021, The University of Sheffield, Department of Economics.
    4. Chen, Fuzhong & Hsu, Chien-Lung & Lin, Arthur J. & Li, Haifeng, 2020. "Holding risky financial assets and subjective wellbeing: Empirical evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    5. Frijters, Paul & Johnston, David W. & Shields, Michael A. & Sinha, Kompal, 2015. "A lifecycle perspective of stock market performance and wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 237-250.
    6. Tonzer Lena, 2019. "Elevated Uncertainty during the Financial Crisis: Do Effects on Subjective Well-Being Differ across European Countries?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-15, April.

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    More about this item

    Keywords

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    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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