Friday, November 09, 2007

Science Journal - WSJ.com

Science Journal - WSJ.com: A look at the Puri and Robinson JFE article on optimism.
"Optimists, the Duke finance scholars discovered, worked longer hours every
week, expected to retire later in life, were less likely to smoke and, when they
divorced, were more likely to remarry. They also saved more, had more of their
wealth in liquid assets, invested more in individual stocks and paid credit-card
bills more promptly. Yet those who saw the future too brightly .... behaved in
just the opposite way, the researchers discovered....Optimism is a little like
red wine," said Duke finance professor and study co-author Manju Puri. "In
moderation, it is good for you; but no one would suggest you drink two bottles a
day.""

Great coverage by the WSJ of a fascintating JFE article.

1 comment:

Shadox said...

The question of cause and effect comes to mind... perhaps those folks are optimists BECAUSE they save more and so forth...