Kuhnen, Camelia M. and Chiao, Joan Y. (2008): Genetic Determinants of Financial Risk Taking. Published in: PLoS ONE , Vol. 2, No. 4 (February 2009)
This is the latest version of this item.
Download (173kB) | Preview
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. We find that the 5-HTTLPR s/s allele carriers take 28% less risk than those carrying the s/l or l/l alleles of the gene. DRD4 7-repeat allele carriers take 25% more risk than individuals without the 7-repeat allele. These findings contribute to the emerging literature on the genetic determinants of economic behavior.
|Item Type:||MPRA Paper|
|Original Title:||Genetic Determinants of Financial Risk Taking|
|Keywords:||genes, risk preferences, financial decisions, neuroeconomics, dopamine, serotonin, emotion, addiction|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D87 - Neuroeconomics
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
|Depositing User:||Camelia Kuhnen|
|Date Deposited:||17. Feb 2009 08:00|
|Last Modified:||18. Feb 2013 15:56|
Cesarini D, Dawes CT, Johannesson M, Lichtenstein P, Wallace B. (2009) Genetic variation in preferences for giving and risk-taking. Quarterly Journal of Economics 124.
Eisen SA, Lin N, Lyons MJ, Scherrer JF, Griffith K et al. (1998) Familial influences on gambling behavior: an analysis of 3359 twin pairs. Addiction 93.
Schultz W (2007) Behavioral dopamine signals. TRENDS in Neuroscience 30.
Daw ND, Sham K, Dayan P (2002) Opponent interactions between serotonin and dopamine. Neural Networks 15, 603–616.
Yacubian J, Sommer T, Schroeder K, Glascher J, Kalisch, R et al. (2007) Gene-gene interaction associated with neural reward sensitivity. PNAS 104, 8125–8130.
Frank MJ, Moustafa AA, Haughey HM, Curran T, Hutchison, KE (2007) Genetic triple dissociation reveals multiple roles for dopamine in re-inforcement learning. PNAS 104, 16311–16316.
Kim SJ, Kim YS, Lee HS, Kim SY, Kim CH (2006) An interaction between the serotonin transporter promoter region and dopamine transporter polymorphisms contributes to harm avoidance and reward dependence traits in normal healthy subjects. Journal of Neural Transmission.
Klein TA, Neumann J, Reuter M, Hennig J, von Cramon, DY et al. (2007) Genetically determined differences in learning from errors. Science 318, 1642–1645.
Reuter M, Hennig J (2005) Association of the functional catechol-o methyltransferase VALI58MET polymorphism with the personality trait of extraversion. NeuroReport 16, 1135–1138.
Ebstein RP, Novick O, Umansky R, Priel B, Osher Y et al. (1996) Dopamine D4 receptor (D4DR) exon III polymorphism associated with the human personality trait of novelty seeking. Nature Genetics 12, 78–80.
Lesch KP, Bengel D, Heils A, Sabol SZ, Greenberg BD et al. (1996) Association of anxiety-related traits with a polymorphism in the serotonin transporter gene regulatory region. Science 274, 1527–1531
Kreek MJ, Nielsen DA, Butelman ER, LaForger S (2005) Genetic influences on impulsivity, risk taking, stress, responsivity and vulnerability to drug abuse and addiction. Nature Neuroscience 8, 1450–1457.
Kuhnen CM, Knutson B (2005) The neural basis of financial risk taking. Neuron 47, 763–770.
Caldu X, Dreher JC (2007) Hormonal and genetic influences on processing reward and social information. Annals of the New York Academy of Sciences 1118, 43–73.
Hariri AR, Mattay VS, Tessitore A, Kolachana B, Fera F, et al. (2002) Serotonin transporter genetic variation and the response of the human amygdala. Science 297, 400–403.
Perez de Castro I, Ibez A, Torres P, Siz-Ruiz, J, Fernandez-Piqueras J (1997) Genetic association study between pathological gambling and a functional DNA polymorphism at the D4 receptor gene. Pharmacogenetics 7, 345–348.
Guo SW, Thompson EA (1992) Performing the Exact Test of Hardy-Weinberg Proportion for Multiple Alleles. Biometrics 48, 361-372.
Markowitz, H (1952) Portfolio selection. Journal of Finance 7.
Dreber A, Apicella C, Eisenberg DTA, Garcia JR, Zamore RS et al. (in press) The 7R polymorphism in the dopamine receptor D4 gene (DRD4) is associated with financial risk-taking in men. Evolution and Human Behavior.
Eisenberg DTA, MacKillop J, Modi M, Beauchemin J, Dang D et al. (2007) Examining Impulsivity as an Endophenotype Using a Behavioral Approach: A DRD2 TaqI A and DRD4 48-bp VNTR Association Study. Behavioral and Brain Functions 3(2).
Chen CS, Burton M, Greenberger E, Dmitrieva J (1999) Population migration and the variation of dopamine D4 receptor (DRD4) allele frequencies around the globe. Evolution and Human Behavior 20(5), 309-324.
Harpending H, Cochran, G (2002) In our genes. Proceedings of the National Academy of Sciences of the United States of America 99(1): 10-12.
Munafo MR, Yalcin B, Willis-Owen SA, Flint J (2008) Association of the dopamine D4 receptor (DRD4) gene and approach-related personality traits: meta-analysis and new data. Biological Psychiatry, 63, 197-206.
Eisenberg DTA, Campbell B, Gray PB, Sorenson MD (2008) Dopamine receptor genetic polymorphisms and body composition in undernourished pastoralists: An exploration of nutrition indices among nomadic and recently settled Ariaal men of northern Kenya. BMC Evolutionary Biology, 8: 173.
Caspi A, Sugden K, Moffitt TE, Taylor A, Craig IW et al. (2003) Influence of life stress on depression: moderation by a polymorphism in the 5-HTT gene. Science, 301(5631): 291-3.
Available Versions of this Item
Genetic Determinants of Financial Risk Taking. (deposited 09. Oct 2008 09:21)
- Genetic Determinants of Financial Risk Taking. (deposited 17. Feb 2009 08:00) [Currently Displayed]