The promises and pitfalls of genoeconomics

Daniel J. Benjamin, David Cesarini, Christopher F. Chabris, Edward L. Glaeser, David I. Laibson, Vilmundur Gunason, 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 GrankvistChristina M. Hultman, Paul Lichtenstein

    Research output: Contribution to journalArticle

    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 jointly, and (c) focusing on economically relevant traits that are most proximate to known biological mechanisms.

    Original languageEnglish (US)
    Pages (from-to)627-662
    Number of pages36
    JournalAnnual Review of Economics
    Volume4
    DOIs
    StatePublished - Jul 2012

    Fingerprint

    Economics
    Measurement error
    Heritability
    Remedies
    Permanent income
    Wealth
    Gene
    Pooling
    Economic behaviour
    Information content
    Personality traits
    Statistical power

    Keywords

    • genetics
    • GWAS
    • heritability

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Benjamin, D. J., Cesarini, D., Chabris, C. F., Glaeser, E. L., Laibson, D. I., Gunason, V., ... Lichtenstein, P. (2012). The promises and pitfalls of genoeconomics. Annual Review of Economics, 4, 627-662. https://doi.org/10.1146/annurev-economics-080511-110939

    The promises and pitfalls of genoeconomics. / Benjamin, Daniel J.; Cesarini, David; Chabris, Christopher F.; Glaeser, Edward L.; Laibson, David I.; Gunason, Vilmundur; Harris, Tamara B.; Launer, Lenore J.; Purcell, Shaun; Smith, Albert Vernon; Johannesson, Magnus; Magnusson, Patrik K E; Beauchamp, Jonathan P.; Christakis, Nicholas A.; Atwood, Craig S.; Hebert, Benjamin; Freese, Jeremy; Hauser, Robert M.; Hauser, Taissa S.; Grankvist, Alexander; Hultman, Christina M.; Lichtenstein, Paul.

    In: Annual Review of Economics, Vol. 4, 07.2012, p. 627-662.

    Research output: Contribution to journalArticle

    Benjamin, DJ, Cesarini, D, Chabris, CF, Glaeser, EL, Laibson, DI, Gunason, V, Harris, TB, Launer, LJ, Purcell, S, Smith, AV, Johannesson, M, Magnusson, PKE, Beauchamp, JP, Christakis, NA, Atwood, CS, Hebert, B, Freese, J, Hauser, RM, Hauser, TS, Grankvist, A, Hultman, CM & Lichtenstein, P 2012, 'The promises and pitfalls of genoeconomics', Annual Review of Economics, vol. 4, pp. 627-662. https://doi.org/10.1146/annurev-economics-080511-110939
    Benjamin DJ, Cesarini D, Chabris CF, Glaeser EL, Laibson DI, Gunason V et al. The promises and pitfalls of genoeconomics. Annual Review of Economics. 2012 Jul;4:627-662. https://doi.org/10.1146/annurev-economics-080511-110939
    Benjamin, Daniel J. ; Cesarini, David ; Chabris, Christopher F. ; Glaeser, Edward L. ; Laibson, David I. ; Gunason, Vilmundur ; Harris, Tamara B. ; Launer, Lenore J. ; Purcell, Shaun ; Smith, Albert Vernon ; Johannesson, Magnus ; Magnusson, Patrik K E ; Beauchamp, Jonathan P. ; Christakis, Nicholas A. ; Atwood, Craig S. ; Hebert, Benjamin ; Freese, Jeremy ; Hauser, Robert M. ; Hauser, Taissa S. ; Grankvist, Alexander ; Hultman, Christina M. ; Lichtenstein, Paul. / The promises and pitfalls of genoeconomics. In: Annual Review of Economics. 2012 ; Vol. 4. pp. 627-662.
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