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Genetic Determinants of Financial Risk Taking

Author

Listed:
  • Kuhnen, Camelia M.
  • Chiao, Joan Y.
Abstract
Individuals vary in their willingness to take financial risks. Here we show that variants of two genes that regulate dopamine and serotonin neurotransmission and have been previously linked to emotional behavior, anxiety and addiction (5-HTTLPR and DRD4) are significant determinants of risk taking in investment decisions. These findings provide novel evidence of a genetic basis for financial choices.

Suggested Citation

  • Kuhnen, Camelia M. & Chiao, Joan Y., 2008. "Genetic Determinants of Financial Risk Taking," MPRA Paper 10895, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10895
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    File URL: https://mpra.ub.uni-muenchen.de/13429/2/MPRA_paper_13429.pdf
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    References listed on IDEAS

    as
    1. Camelia Kuhnen & Brian Knutson, 2005. "The Neural Basis of Financial Risk Taking," Experimental 0509001, University Library of Munich, Germany.
    2. David Cesarini & Christopher T. Dawes & Magnus Johannesson & Paul Lichtenstein & Björn Wallace, 2009. "Genetic Variation in Preferences for Giving and Risk Taking," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 809-842.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    genes; risk preferences; financial decisions; neuroeconomics; dopamine; serotonin; emotion; addiction;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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