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Credit card borrowing and the monoamine oxidase A (MAOA) gene

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  • De Neve, Jan-Emmanuel
  • Fowler, James H.

Abstract

Using a discovery and replication sample from a U.S. representative data set, we show that a functional polymorphism on the MAOA gene is associated with credit card borrowing behavior. For the combined sample of approximately 12,000 individuals we find that having one or both MAOA alleles of the less transcriptionally efficient type raises the average likelihood of reporting credit card debt by about 4%. These results suggest that behavioral models benefit from integrating genetic variation and that economists should consider the welfare consequences of possible discrimination by lenders on the basis of genotype.

Suggested Citation

  • De Neve, Jan-Emmanuel & Fowler, James H., 2014. "Credit card borrowing and the monoamine oxidase A (MAOA) gene," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PB), pages 428-439.
    • Handle: RePEc:eee:jeborg:v:107:y:2014:i:pb:p:428-439
    DOI: 10.1016/j.jebo.2014.03.002
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    More about this item

    Keywords

    Credit card borrowing; Present-biased time preferences; MAOA gene; Genetic association study;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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