Economics at your fingertips  

Can't wait to celebrate: Holiday euphoria, impulsive behavior and time preference

Eyal Lahav, Tal Shavit and Uri Benzion

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2016, vol. 65, issue C, 128-134

Abstract: The pre-holiday effect is a well-documented phenomenon, especially for financial markets. The behavioral explanation for the pre-holiday effect is called “holiday euphoria.” In the current paper, we examine how the holiday period influences the time preference of students, by comparing their subjective discount rate before and after the Passover holiday in Israel. Although there is considerable research on the pre-holiday effect and its influence on investors in the capital market, we are unaware of any prior research on the influence of the pre-holiday effect on time preference. Our results suggest that holiday euphoria induces impulsive behavior, making people more present-oriented (having a higher subjective discount rate) before the holiday. We also show how holiday euphoria affects people's immediate mood (feeling down in the present), and how it is affected by their level of pessimism.

Keywords: Time preference; Discount rates; Delay discounting; Pre-holiday; Holiday euphoria (search for similar items in EconPapers)
JEL-codes: C93 D90 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Ofer Azar

More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-11-30
Handle: RePEc:eee:soceco:v:65:y:2016:i:c:p:128-134