A Theory of Mood Influenced Investment in Health

Speaker
Amnon Levy
Date
30/09/2013 - 12:30 - 11:00Add To Calendar 2013-09-30 11:00:00 2013-09-30 12:30:00 A Theory of Mood Influenced Investment in Health Abstract: A mood-utility link is incorporated into a theory of rational investment in personal health, whereby mood is adversely (positively) affected as instantaneous utility falls below (rises above) a threshold. The analysis is conducted within a stochastic dynamic framework, where moods are experienced along a health-dependent random lifespan and generate returns that form the individual’s lifetime happiness. The investigation highlights the effects of the inclination to be moody and the health sensitivity to mood on investment in one’s personal health. JEL Classification: D91 Keywords: Utility threshold; Mood; Risk; Exercising; Health; Lifetime Happiness; Optimal Control אוניברסיטת בר-אילן - Department of Economics Economics.Dept@mail.biu.ac.il Asia/Jerusalem public
Affiliation
University of Wollongong
Abstract

Abstract: A mood-utility link is incorporated into a theory of rational investment in personal health, whereby mood is adversely (positively) affected as instantaneous utility falls below (rises above) a threshold. The analysis is conducted within a stochastic dynamic framework, where moods are experienced along a health-dependent random lifespan and generate returns that form the individual’s lifetime happiness. The investigation highlights the effects of the inclination to be moody and the health sensitivity to mood on investment in one’s personal health.

JEL Classification: D91

Keywords: Utility threshold; Mood; Risk; Exercising; Health; Lifetime Happiness; Optimal Control

Attached file

Last Updated Date : 18/09/2013