January 25, 2024 - 2:00 pm
January 25, 2024 - 3:00 pm
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Prosperity’s paradox: unraveling the relationship between happiness and peer-to-peer lending
Student: Trần Nữ Vân Anh, VNP-26
Supervisor: Dr. Vũ Thị Hồng Nhung
This study explores the relationship between national happiness levels and online peer-to-peer (P2P) lending across 25 countries from 2013 to 2020. Utilizing fixed-effect models and panel data, the study integrates concepts from behavioral finance, happiness economics, and P2P lending trends. A key finding is the significant negative impact of happiness on P2P lending, suggesting that higher happiness levels are associated with reduced P2P lending activities, reflecting risk-averse financial behaviors. Interestingly, when examining whether the relationship between happiness and P2P lending expansion differs across various income levels, the study finds evidence that this negative effect of happiness on P2P lending is significant only in high-income countries. In contrast, in middle-income nations, happiness does not exhibit a significant effect on P2P lending. These insights underline the importance of economic context in the interplay between emotional factors and financial behavior.
Keywords: alternative finance, peer-to-peer lending, P2P lending, happiness.
JEL classification: C23, E22