2006–2010

Genetic Variation in Financial Decision-Making

Reprint No. 2010:25

Author(s): David Cesarini, Magnus Johannesson, Paul Lichtenstein, Örjan Sandewall and Björn WallaceYear: 2010 Title: Journal of Finance Volume (No.): 65 (5) Pages: 1725–1754
Online article (restrictions may apply)


Individuals differ in how they construct their investment portfolios, yet empirical models of portfolio risk typically account only for a small portion of the cross-sectional variance. This paper asks whether genetic variation can explain some of these individual differences. Following a major pension reform Swedish adults had to form a portfolio from a large menu of funds. We match data on these investment decisions with the Swedish Twin Registry and find that approximately 25% of individual variation in portfolio risk is due to genetic variation. We also find that these results extend to several other aspects of financial decision-making.


Reference:
Cesarini, David, Magnus Johannesson, Paul Lichtenstein, Örjan Sandewall and Björn Wallace (2010), "Genetic Variation in Financial Decision-Making". Journal of Finance 65(5), 1725–1754.

Elgar Companion to

Social Capital and Health

Martin Ljunge okt 2018.jpg

Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

About the book

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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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