Welcome to the 2018 AFS Annual Meeting, being held this year, in conjunction with FPA in Chicago!
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Tuesday, October 2 • 10:30am - 11:20am
C1b - The Effect of Genetics on Risk Preferences and Household Financial Decisions [CFP Risk Preference - Nature or Nurture]

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This study investigates how genetics influence risk preferences and financial decisions. We expand on existing theoretical models to show that risk preferences that depend on genetic differences can explain non-expected utility maximizing behavior. We test these results using several waves of the Health and Retirement Study, which includes a rich set of information on households including biomarkers and genetic data for a large portion of the sample.  We measure risk preferences using established methodologies (see Kimball et al. 2008) and create an alternative measure of risk preferences that incorporates polygenic scores estimated from the raw genetic data.  We then estimate the effect of risk preferences using these alternative measures on risk-related household decisions such as insurance purchase decisions and retirement saving, and evaluate the relative contribution that risk preferences play in determining household financial well-being.

Author(s): Vickie Bajtelsmit, Lisa Posey

avatar for Vickie Bajtelsmit, PhD

Vickie Bajtelsmit, PhD

Professor, Colorado State University

Tuesday October 2, 2018 10:30am - 11:20am CDT
Michigan 1A

Attendees (4)