The Seasonal Affective Disorder: The Seasons versus the Length of Night

Abstract

Kamstra et al. (2003, 2011) offer measures of the prevalence of the seasonal affective disorder based on the hours of night and the medical incidence of the disorder in the North American population. Simpler measures are constructed by Kliger et al. (2012) using variables based upon the four seasons. Applying correlation analysis and factor analysis, we find these two sets of measures are empirical substitutes. We suggest researchers use the simpler seasonal mood variables of Kliger et al. rather than the more complicated measures of Kamstra et al. when examining the influence of the seasonal affective disorder on asset prices.

Keywords: Seasonal affective disorder, Seasons, Mood, Asset Pricing

JEL Classification: G10, G11, G12