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Anna Bassi, Riccardo Colacito, Paolo Fulghieri, ’O Sole Mio: An Experimental Analysis of Weather and Risk Attitudes in Financial Decisions, The Review of Financial Studies, Volume 26, Issue 7, July 2013, Pages 1824–1852, https://doi.org/10.1093/rfs/hht004
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Abstract
Although weather has been shown to affect financial markets and financial decision making, a still open question is the channel through which such influence is exerted. By employing a multiple price list method, this paper provides direct experimental evidence that sunshine and good weather promote risk-taking behavior. This effect is present whether relying on objective measures of meteorological conditions or subjective weather assessments. Finally, employing a psychological test, we find evidence that weather may affect individual risk tolerance through its effect on mood.