Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150765
Authors: 
Guven, Cahit
Year of Publication: 
2009
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 218
Abstract: 
Weather variables, and sunshine in particular, are found to be strongly correlated with financial variables. I consider self-reported happiness as a channel through which sunshine affects financial variables. I examine the influence of happiness on risk-taking behavior by instrumenting individual happiness with regional sunshine, and I find that happy people appear to be more risk-averse in financial decisions, and accordingly choose safer investments. Happy people take more time for making decisions and have more self-control. Happy people also expect to live longer and accordingly seem more concerned about the future than the present, and expect less inflation.
Subjects: 
happiness
risk-taking
climate
JEL: 
D1
D91
G11
Document Type: 
Working Paper

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