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The Genetic Architecture of Economic and Political Preferences

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  • van der Loos, Matthijs J. H. M.
  • Benjamin, Daniel J.
  • Cesarini, David
  • Dawes, Christopher T.
  • Koellinger, Philipp D.
  • Magnusson, Patrik K. E.
  • Chabris, Christopher F.
  • Conley, Dalton
  • Laibson, David I.
  • Johannesson, Magnus
  • Visscher, Peter M.

Abstract

Preferences are fundamental building blocks in all models of economic and political behavior. We study a new sample of comprehensively genotyped subjects with data on economic and political preferences and educational attainment. We use dense single nucleotide polymorphism (SNP) data to estimate the proportion of variation in these traits explained by common SNPs and to conduct genome-wide association study (GWAS) and prediction analyses. The pattern of results is consistent with findings for other complex traits. First, the estimated fraction of phenotypic variation that could, in principle, be explained by dense SNP arrays is around one-half of the narrow heritability estimated using twin and family samples. The molecular-genetic–based heritability estimates, therefore, partially corroborate evidence of significant heritability from behavior genetic studies. Second, our analyses suggest that these traits have a polygenic architecture, with the heritable variation explained by many genes with small effects. Our results suggest that most published genetic association studies with economic and political traits are dramatically underpowered, which implies a high false discovery rate. These results convey a cautionary message for whether, how, and how soon molecular genetic data can contribute to, and potentially transform, research in social science. We propose some constructive responses to the inferential challenges posed by the small explanatory power of individual SNPs.

Suggested Citation

  • van der Loos, Matthijs J. H. M. & Benjamin, Daniel J. & Cesarini, David & Dawes, Christopher T. & Koellinger, Philipp D. & Magnusson, Patrik K. E. & Chabris, Christopher F. & Conley, Dalton & Laibson,, 2012. "The Genetic Architecture of Economic and Political Preferences," Scholarly Articles 10121961, Harvard University Department of Economics.
  • Handle: RePEc:hrv:faseco:10121961
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    6. Lauren L. Schmitz & Dalton Conley, 2016. "The Effect of Vietnam-Era Conscription and Genetic Potential for Educational Attainment on Schooling Outcomes," NBER Working Papers 22393, National Bureau of Economic Research, Inc.
    7. Bierut, Laura & Biroli, Pietro & Galama, Titus J. & Thom, Kevin, 2023. "Challenges in studying the interplay of genes and environment. A study of childhood financial distress moderating genetic predisposition for peak smoking," Journal of Economic Psychology, Elsevier, vol. 98(C).
    8. Cronqvist, Henrik & Yu, Frank, 2017. "Shaped by their daughters: Executives, female socialization, and corporate social responsibility," Journal of Financial Economics, Elsevier, vol. 126(3), pages 543-562.
    9. Hyeokmoon Kweon & Casper A.P. Burik & Richard Karlsson Linner & Ronald de Vlaming & Aysu Okbay & Daphne Martschenko & Kathryn Paige Harden & Thomas A. DiPrete & Philipp D. Koellinger, 2020. "Genetic Fortune: Winning or Losing Education, Income, and Health," Tinbergen Institute Discussion Papers 20-053/V, Tinbergen Institute, revised 01 Dec 2020.
    10. Kettlewell, Nathan & Tymula, Agnieszka, 2021. "The Heritability of Trust and Trustworthiness Depends on the Measure of Trust," IZA Discussion Papers 14734, Institute of Labor Economics (IZA).
    11. Vanessa Mertins & Andrea B. Schote & Jobst Meyer, 2013. "Variants of the Monoamine Oxidase A Gene (MAOA) Predict Free-riding Behavior in Women in a Strategic Public Goods Experiment," IAAEU Discussion Papers 201302, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    12. Dixon, Padraig & Hollingworth, William & Harrison, Sean & Davies, Neil M. & Davey Smith, George, 2020. "Mendelian Randomization analysis of the causal effect of adiposity on hospital costs," Journal of Health Economics, Elsevier, vol. 70(C).
    13. Matthew W. Hughey & W. Carson Byrd, 2015. "Beautiful Melodies Telling Me Terrible Things," The ANNALS of the American Academy of Political and Social Science, , vol. 661(1), pages 238-258, September.
    14. Sergi Vidal & Philipp M. Lersch & Marita Jacob & Karsten Hank, 2020. "Interdependencies in Mothers’ and Daughters’ Work-Family Life Course Trajectories: Similar but Different?," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1483-1511, August.
    15. Pablo Brañas-Garza & Jaromír Kovářík & Levent Neyse, 2013. "Second-to-Fourth Digit Ratio Has a Non-Monotonic Impact on Altruism," PLOS ONE, Public Library of Science, vol. 8(4), pages 1-10, April.
    16. Brenøe, Anne Ardila & Epper, Thomas, 2022. "Parenting values and the intergenerational transmission of time preferences," European Economic Review, Elsevier, vol. 148(C).
    17. Dawes, Christopher T. & Johannesson, Magnus & Lindqvist, Erik & Loewen, Peter & Östling, Robert & Bonde, Marianne & Priks, Frida, 2012. "Generosity and Political Preferences," Working Paper Series 941, Research Institute of Industrial Economics.
    18. Chen, Xiangpo & Hu, Xinyan & Xu, Jinhai, 2023. "When winter is over, its cold remains: Early-life famine experience breeds risk aversion," Economic Modelling, Elsevier, vol. 123(C).
    19. Finley, Brian & Kalwij, Adriaan & Kapteyn, Arie, 2022. "Born to be wild: Second-to-fourth digit length ratio and risk preferences," Economics & Human Biology, Elsevier, vol. 47(C).
    20. Burnham, Terence C., 2013. "Toward a neo-Darwinian synthesis of neoclassical and behavioral economics," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages 113-127.
    21. Kettlewell, Nathan, 2019. "Risk preference dynamics around life events," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 66-84.
    22. El Mouden, Claire, 2013. "The Sciences Of Risk: Implications For Regulation Of The Financial Sector," INET Oxford Working Papers 2013-01, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.

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