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.
|Tidsskrift||National Bureau of Economic Research. Working Paper Series|
|Status||Udgivet - 2017|
|Begivenhed||SITE Summer Workshops 2017: Session 4: New Thinking about Economic Challenges in the Design and Implementation of Programs to Stabilize the Climate - Stanford University, Palo Alto, USA|
Varighed: 5. jul. 2017 → …
|Konference||SITE Summer Workshops 2017|
|Periode||05/07/2017 → …|