Stock market returns and health risk

Economic activities induced by wealth shocks can increase health risks. However, using individual-level national death registry data of South Korea from 2000 to 2019, we find little evidence that daily stock market returns influence instantaneous health risks measured by deaths due to substance abuse and heart disease. Combined with the findings from previous studies, our results provide supportive evidence of the hypothesis that stock market returns affect investors' instantaneous utility by anticipating future consumption rather than current consumption.