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Stress and Coping - An Economic Approach

Author

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  • Klaus Wälde
Abstract
We present a psychological model of stress. Appraisal translates stressors into subjective stress. Stress reduces instantaneous utility of an individual directly and via cognitive load. Coping can be under the control of the individual or more automatic. We predict the occurrence of uncontrolled coping .emotional outbursts .as a function of an individual’s theory-consistent personality and environment. We explain when stressors reduce income. We also explain under which conditions rising income does not go hand in hand with rising stress. First steps towards a theory of therapy show how stressed individuals can improve their well-being beyond standard coping measures.

Suggested Citation

  • Klaus Wälde, 2018. "Stress and Coping - An Economic Approach," CESifo Working Paper Series 6966, CESifo.
    • Handle: RePEc:ces:ceswps:_6966
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    Cited by:

    1. Altmann, Steffen & Traxler, Christian & Weinschenk, Philipp, 2017. "Deadlines and Cognitive Limitations," IZA Discussion Papers 11129, Institute of Labor Economics (IZA).
    2. Klaus Wälde & Agnes Moors, 2016. "Current Emotion Research in Economics," Working Papers 1612, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    3. Hua, Kuo-Ting, 2023. "From trauma to resilience: The effect of stress on the labor market outcome of refugees," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 126-134.
    4. Colantone, Italo & Crinò, Rosario & Ogliari, Laura, 2019. "Globalization and mental distress," Journal of International Economics, Elsevier, vol. 119(C), pages 181-207.
    5. Katrin Hirte, 2019. "Das dritte gossensche Gesetz - Zur Ueberlieferungspraxis in der oeconomischen Dogmenhistorie," ICAE Working Papers 93, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.

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    More about this item

    Keywords

    stress; coping; personality; controlled vs. automatic reaction; emotional outbursts; income.;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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