The Promises and Pitfalls of Genoeconomics

Daniel Benjamin, David Cesarini, Christopher F. Chabris, Edward L. Glaeser, David Laibson, Vilmundur Guðnason, Tamara B. Harris, Lenore J. Launer, Shaun Purcell, Albert Vernon Smith, Magnus Johannesson, Patrik K.E. Magnusson, Jonathan P. Beauchamp, Nicholas A. Christakis, Craig S. Atwood, Benjamin Hebert, Jeremy Freese, Robert M. Hauser, Taissa S. Hauser, Alexander Grankvist, Christina M. Hultman and Paul Lichtenstein
Additional contact information
Christopher F. Chabris: Department of Psychology, Union College, Schenectady, New York 12308
Edward L. Glaeser: Department of Economics, Harvard University, and National Bureau of Economic Research, Cambridge, Massachusetts 02138
Vilmundur Guðnason: Icelandic Heart Association, OS-201 Kopavogur, Iceland
Tamara B. Harris: Laboratory of Epidemiology, Demography, and Biometry, National Institute on Aging, Bethesda, Maryland 28092
Lenore J. Launer: Laboratory of Epidemiology, Demography, and Biometry, National Institute on Aging, Bethesda, Maryland 28092
Shaun Purcell: Center for Human Genetics Research, Massachusetts General Hospital, Boston, Massachusetts 02114
Albert Vernon Smith: Icelandic Heart Association, OS-201 Kopavogur, Iceland
Patrik K.E. Magnusson: Department of Medical Epidemiology and Biostatistics, Karolinska Institutet, SE-171 77 Stockholm, Sweden
Jonathan P. Beauchamp: McKinsey Consulting, Montreal, H3B 4W8 Quebec, Canada
Nicholas A. Christakis: Department of Sociology, Harvard University, Cambridge, Massachusetts 02138; Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts 02115
Craig S. Atwood: Department ofMedicine, University ofWisconsin-Madison,Madison,Wisconsin 53705
Benjamin Hebert: Department of Economics, Harvard University, Cambridge, Massachusetts 02138
Jeremy Freese: Department of Sociology, Northwestern University, Evanston, Illinois 60208
Robert M. Hauser: Department of Sociology, University ofWisconsin-Madison, Madison, Wisconsin 53706
Taissa S. Hauser: Department of Sociology, University ofWisconsin-Madison, Madison, Wisconsin 53706
Alexander Grankvist: Department of Medical Epidemiology and Biostatistics, Karolinska Institutet, SE-171 77 Stockholm, Sweden
Christina M. Hultman: Department of Medical Epidemiology and Biostatistics, Karolinska Institutet, SE-171 77 Stockholm, Sweden
Paul Lichtenstein: Department of Medical Epidemiology and Biostatistics, Karolinska Institutet, SE-171 77 Stockholm, Sweden

Annual Review of Economics, 2012, vol. 4, issue 1, 627-662

Abstract: This article reviews existing research at the intersection of genetics and economics, presents some new findings that illustrate the state of genoeconomics research, and surveys the prospects of this emerging field. Twin studies suggest that economic outcomes and preferences, once corrected for measurement error, appear to be about as heritable as many medical conditions and personality traits. Consistent with this pattern, we present new evidence on the heritability of permanent income and wealth. Turning to genetic association studies, we survey the main ways that the direct measurement of genetic variation across individuals is likely to contribute to economics, and we outline the challenges that have slowed progress in making these contributions. The most urgent problem facing researchers in this field is that most existing efforts to find associations between genetic variation and economic behavior are based on samples that are too small to ensure adequate statistical power. This has led to many false positives in the literature. We suggest a number of possible strategies to improve and remedy this problem: ( a) pooling data sets, ( b) using statistical techniques that exploit the greater information content of many genes considered jointly, and ( c) focusing on economically relevant traits that are most proximate to known biological mechanisms.

Keywords: genetics; heritability; GWAS (search for similar items in EconPapers)
JEL-codes: A12 D03 Z00 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (36)

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