Using individual-level data of antidepressant prescriptions filled and the local bias phenomenon of investors in the United States, we study the effects of stock declines on the psychological health of investors and find that a one standard deviation decrease in local stock returns increases...

This study examines the effects of local stock returns on antidepressant usage using the Truven Health MarketScan® individual prescription drug data. There are three main findings. First, a one standard deviation decrease in local stock return increases local investor's antidepressant usage by...