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When the market drives you crazy: Stock market returns and fatal car accidents

Corrado Giulietti (), Mirco Tonin and Michael Vlassopoulos ()

Journal of Health Economics, 2020, vol. 70, issue C

Abstract: This paper provides evidence that daily fluctuations in the stock market have important – and hitherto neglected – spillover effects on fatal car accidents. Using the universe of fatal car accidents in the United States from 1990 to 2015, we find that a one standard deviation reduction in daily stock market returns is associated with a 0.6% increase in fatal car accidents that happen after the stock market opening. A battery of falsification tests supports a causal interpretation of this finding. Our results are consistent with immediate emotions stirred by a negative stock market performance influencing the number of fatal accidents, in particular among inexperienced investors.

Keywords: Stock market; Car accidents; Emotions (search for similar items in EconPapers)
JEL-codes: D91 G41 I12 R41 (search for similar items in EconPapers)
Date: 2020
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Working Paper: When the market drives you crazy: Stock market returns and fatal car accidents (2018) Downloads
Working Paper: When the Market Drives you Crazy: Stock Market Returns and Fatal Car Accidents (2018) Downloads
Working Paper: When the market drives you crazy: Stock market returns and fatal car accidents (2018) Downloads
Working Paper: When the Market Drives You Crazy: Stock Market Returns and Fatal Car Accidents (2018) Downloads
Working Paper: When the market drives you crazy: Stock market returns and fatal car accidents (2018) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:70:y:2020:i:c:s0167629619301237

DOI: 10.1016/j.jhealeco.2019.102245

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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