Portfolio choice and mental health

V.L. Bogan, A.R. Fertig

Research output: Contribution to journalArticle

16 Citations (Scopus)

Abstract

Close to 30% of the US population experiences at least one mental or substance abuse disorder each year. Given the prevalence of mental health issues, this paper analyzes the role of mental health and cognitive functioning in household portfolio choice decisions. Generally, we find that households affected by mental health issues decrease investments in risky instruments. Various mental health issues can reduce the probability of holding risky assets by up to 19%. Moreover, single women diagnosed with psychological disorders increase investments in safe assets. We also find that cognitive functioning issues are associated with an increase in financial assets devoted to retirement accounts. © 2012 The Authors 2012. Published by Oxford University Press on behalf of the European Finance Association. All right reserved. For Permissions, please email: journals.permissions@oup.com.
Original languageEnglish
Pages (from-to)955-992
Number of pages38
JournalReview of Finance
Volume17
Issue number3
DOIs
StatePublished - 2013

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Mental health
Portfolio choice
Assets
Functioning
Substance abuse
Finance
Financial assets
Psychological
Retirement
Household portfolios
Household

Bibliographical note

Cited By :13

Export Date: 26 December 2018

Correspondence Address: Bogan, V.L.; Cornell UniversityUnited States

Cite this

Portfolio choice and mental health. / Bogan, V.L.; Fertig, A.R.

In: Review of Finance, Vol. 17, No. 3, 2013, p. 955-992.

Research output: Contribution to journalArticle

Bogan, V.L. ; Fertig, A.R. / Portfolio choice and mental health. In: Review of Finance. 2013 ; Vol. 17, No. 3. pp. 955-992.
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