Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Research Institute of Industrial Economics (IFN) Working Paper Series

No 765:
Is Financial Risk-Taking Behavior Genetically Transmitted?

David Cesarini (), Magnus Johannesson (), Paul Lichtenstein, Örjan Sandewall () and Björn Wallace ()

Abstract: In this paper, we use a sample of almost 30,000 Swedish mono- and dizygotic twins to study the heritability of financial risk-taking. Following a major pension reform in the year 2000, virtually all Swedish adults had to simultaneously make a financial decision affecting post-retirement wealth. We take this event as a field experiment to infer risk preferences. We use standard techniques from behavior genetics to partition variation in risk-taking into environmental and genetic components. Our findings suggest that genetic variation is an important source of individual heterogeneity in financial risk-taking.

Keywords: Genetics; Risk-Taking; Portfolio Investment; Twins; (follow links to similar papers)

JEL-Codes: D01; G11; (follow links to similar papers)

40 pages, September 23, 2008

Download Statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:iuiwop:0765 This page was generated on 2014-12-14 19:24:19