Optimism and economic choice

Description

"This paper presents some of the first large-scale survey evidence linking optimism to major economic choices. We create a novel measure of optimism using the Survey of Consumer Finance by comparing a person's self-reported life expectancy to that implied by statistical tables. Optimists are more likely to believe that future economic conditions will improve. Self-employed respondents are more optimistic than regular wage earners. In general, more optimistic people work harder and anticipate longer age-adjusted work careers. They are more likely to remarry, conditional on divorce. In addition, they tilt their investment portfolios more toward individual stocks"--National Bureau of Economic Research web site.

Subjects

Series Statement

• NBER working paper series ;
• working paper 11361
• Working paper series (National Bureau of Economic Research : Online) ;
• working paper no. 11361.

Links

• http://papers.nber.org/papers/W11361
• URL