Temperature’s Toll on Decision-Making

Dados Bibliográficos

ID9717005
AutoresMichelle Escobar Carias (The University of Melbourne), David W Johnston (0000-0003-3185-2890, Monash University), Rachel Knott (0000-0001-5715-0139, Monash University), Rohan Sweeney (0000-0002-3243-9523, Monash University)
Ano2024
Volume134
Fascículo663
Páginas2746-2771
Data de publicação2024-09-17
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/ueae036
OpenAlexW4396743405
IdiomaEN
Citações recebidas4
Referências citadas64

Does temperature affect decision-making abilities and rationality? Using Indonesian data, we estimate how risky choices, impatience and rational choice violations vary with exposure to temperature. We show that hot weather temporarily increases rational choice violations and impatience, but does not affect risk-related decisions. These effects are primarily driven by nighttime rather than daytime temperatures. We provide suggestive evidence that the mechanism behind these effects is decreased sleep quality, affecting cognition the following day, particularly math skills. These skills are critical for rational and utility-maximising decision-making. Effects are largest for economically disadvantaged households and in areas with low rates of air-conditioning

Toll · Climate Change and Health Impacts · Decision-Making and Behavioral Economics · Immunology · Medicine · Psychological Well-being and Life Satisfaction