Working Paper Series
Is Financial Risk-Taking Behavior Genetically Transmitted?
(), 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
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