This paper explores whether and how feedback, framing, personality, and risk attitude could affect financial optimism in an enclosed experimental environment. Evidence in this paper shows that feedback on investment performance affects financial optimism depending on whether people forecast...

This study investigates whether being financially optimistic has any benefits on objective and subjective well-being. We define financial optimism as the likelihood of a positive outcome relative to rational expectation in an individual's future financial situation. We analyze data from the...

This study develops innovative measures of financial optimism by defining optimism as the overestimation of the favourable outcome in an individual's future financial situation. The paper finds that optimism has a positive influence on an individual's preference for risky portfolios and a...