TY - JOUR
T1 - Cost of health problems caused by stock market volatility
T2 - An empirical study in Taiwan
AU - Weng, Pei Shih (Pace)
AU - Hsiao, Yu Jen
AU - Hsiao, Kai Yuan
AU - Chang, Wei Shan
N1 - Funding Information:
Acknowledges the financial support from the Fundamental Research Funds for National Science and Technology Council (Grant no. 109-2410-H-038-002 -).
Publisher Copyright:
© 2023
PY - 2023/11
Y1 - 2023/11
N2 - This study highlights the often-overlooked health impacts and related costs endured by individual investors due to market volatility. Leveraging Taiwan's unique market characteristics and healthcare system, we underscore the economic repercussions of health degradation induced by market instability. Analyzing daily medical costs for depression and hypertension patients over 11 years reveals the impact of market turbulence. Specifically, a standard deviation increase in daily market volatility aligns with 4% and 12% surges in daily emergency and outpatient spending, respectively. To avert confounding biases, our empirical models account for market regimes and weather factors, and the outcomes are corroborated through robustness tests.
AB - This study highlights the often-overlooked health impacts and related costs endured by individual investors due to market volatility. Leveraging Taiwan's unique market characteristics and healthcare system, we underscore the economic repercussions of health degradation induced by market instability. Analyzing daily medical costs for depression and hypertension patients over 11 years reveals the impact of market turbulence. Specifically, a standard deviation increase in daily market volatility aligns with 4% and 12% surges in daily emergency and outpatient spending, respectively. To avert confounding biases, our empirical models account for market regimes and weather factors, and the outcomes are corroborated through robustness tests.
KW - Emergency
KW - Medical expenses
KW - Outpatient
KW - Stock market volatility
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U2 - 10.1016/j.frl.2023.104206
DO - 10.1016/j.frl.2023.104206
M3 - Article
AN - SCOPUS:85165558851
SN - 1544-6123
VL - 57
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 104206
ER -