We analyze the impact of mental health changes on individuals' willingness to take risks utilizing the nationally representative, longitudinal Socio Demographic Panel dataset of the German population. We employ regression-adjusted matching to identify the impact of mental health changes on...

Utilizing the longitudinal SOEP data representative of the German population, we find that mental health shocks significantly decrease the willingness to take risks. We also find that mental health improvements increase the willingness to take risks significantly. Our findings are relevant for...