Genetic Variation In Preferences For Giving And Risk-Taking
Source: Stockholm School of Economics
In this paper, the authors use the classical twin design to provide estimates of genetic and environmental influences on experimentally elicited preferences for risk and giving. Using standard methods from behavior genetics, they find strong prima facie evidence that these preferences are broadly heritable and the estimates suggest that genetic differences explain approximately twenty percent of individual variation. The results thus shed light on an important source of individual variation in preferences, a source which has hitherto been largely neglected in the economics literature.