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2022 Annual Conference

del 19 al 21 de May del 2022

Sheraton Sand Key, Clearwater Beach, FL, US

Proposal authors can use this tool to see where they have been placed in the program agenda for an Oral or Poster Session.

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Confirm your place in the schedule by going to the ACCI Presenter Confirm Google Sheet and marking your session with the name and email address of the author who will be attending and presenting. Each presentation must have a separate paid registraint. Contact the ACCI Office immedicately by email at admin@consumerinterests.org to report a conflict or if you have questions. Please be sure to reference the session title(s), date(s), and time(s) if you contact us.

F3a Depression and Financial Planning Horizon

sábado, el 21 de mayo de 2022 a las 08:45–10:15 EDT
Room 3
Key Words

depression, financial planning horizon, time preference, intertemporal choice

Short Description

Major depression is associated with biased information processing and decision making. Previous research suggests that people dealing with depression view the future negatively and exhibit a higher discounting rate than healthy persons. This study tests the hypothesis that depression is associated with the financial planning horizon–the time horizon by which individuals and households formulate their saving and spending schedules. Analyses conducted using data drawn from multiple waves of the Health and Retirement Study show an inverse association between major depressive episodes and the financial planning horizon, indicating that depressed people plan their finances over a shorter horizon. We also find that major depression is associated with various health and financial outcomes representing the evidence of myopic decision making. The link between depression and the financial planning horizon is partially explained by depression-oriented differences in behavioral traits, such as optimism/pessimism, perceived control, perceived mastery, and self-assessed survival probability. Overall, our findings point to a significant economic cost of depression, which compounds through myopic financial planning.

Submitter

Young Joo Choung, University of Georgia

Authors

Young Joo Choung, University of Georgia
Swarn Chatterjee, University of Georgia
Tae-Young Pak, Sungkyunkwan University
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