Fresh Air Eases Work - The Effect of Air Quality on Individual Investor Activity / Steffen Meyer, Michaela Pagel.

Format:

Book

Author/Creator:

Meyer, Steffen.

Contributor:

National Bureau of Economic Research.

Pagel, Michaela.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24048.

NBER working paper series no. w24048

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

This paper shows that air quality has a significantly negative effect on the likelihood of individual investors to sit down, log in, and trade in their brokerage accounts controlling for investor-, weather-, traffic-, and market-specific factors. In perspective, a one standard deviation increase in fine particulate matter leads to the same reduction in the probability of logging in and trading as a one standard deviation increase in sunshine. We document this effect for low levels of pollution that are commonly found throughout the developed world. As individual investor trading can be a proxy for everyday cognitively-demanding tasks such as office work, our findings suggest that the negative effects of pollution on white-collar work productivity are much more severe than previously thought. To our knowledge, this is the first study to demonstrate a negative impact of pollution on a measure of white-collar productivity at the individual level in a western country.

Notes:

Print version record

November 2017.