Faculty Sponsor: Balazs Zelity
Abstract: Economists have hypothesized that there is a relationship between seasonal affective disorder (SAD) and consumer feelings about the economy, often measured indirectly through stock market performance. However, not much research has been done on the relationship between SAD and the more direct measure of consumer confidence. The purpose of this research is to examine if there is a relationship between SAD and consumer confidence by indirectly measuring SAD through the seasonal variables of sunlight duration, solar elevation, and sun declination. The results revealed that there is a slight positive and statistically significant relationship between sunlight duration, solar elevation, and consumer confidence, particularly when looking at measures for consumer perceptions of the future of their jobs, personal investments, and local economy at large, even when controlling for larger economic predictors such as GDP growth rate, annual change in CPI, and unemployment rate. These findings suggest that the length of daylight and the elevation of the sun may affect consumer confidence and positive/negative feelings about the economy. Further research should be done into this topic to validate these results and confirm the presence or absence of SAD as a predictor variable through more direct measurements.
The-Association-Between-Seasonal-Affective-Disorder-and-Consumer-Confidence