Negative shocks predict change in cognitive function and preferences: assessing the negative affect and stress hypothesis.

ABSTRACT: In the context of the current COVID-19 pandemic, households throughout the world have to cope with negative shocks. Previous research has shown that negative shocks impair cognitive function and change risk, time and social preferences. In this study, we analyze the results of a longitudinal multi-country survey conducted in Italy (N = 1652), Spain (N = 1660) and the United Kingdom (N = 1578). We measure cognitive function using the Cognitive Reflection Test and preferences traits (risk, time and social preferences) using an experimentally validated set of questions to assess the differences between people exposed to a shock compared to the rest of the sample. We measure four possible types of shocks: labor market shock, health shock, occurrence of stressful events, and mental health shock

SUBMITTER: Bogliacino F 

PROVIDER: S-EPMC7878761 | biostudies-literature | 2021 Feb

REPOSITORIES: biostudies-literature