Abstract
Heterogeneity of household financial outcomes emerges from various individual and environmental factors, including personality, cognitive ability, and socioeconomic status (SES), among others. Using a genetically informative data set, we decompose the variation in financial management behavior into genetic, shared environmental and non-shared environmental factors. We find that about half of the variation in financial distress is genetically influenced, and personality and cognitive ability are associated with financial distress through genetic and within-family pathways. Moreover, genetic influences of financial distress are highest at the extremes of SES, which in part can be explained by neuroticism and cognitive ability being more important predictors of financial distress at low and high levels of SES, respectively.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 404-424 |
| Number of pages | 21 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | 142 |
| DOIs | |
| State | Published - Oct 2017 |
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Keywords
- Behavior genetics
- Cognitive ability
- Household finance
- Personality traits
- Socioeconomic status
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management
Cite this
Genetic and environmental influences on household financial distress. / Xu, Yilan; Briley, Daniel Andrew; Brown, Jeffrey R; Roberts, Brent W.
In: Journal of Economic Behavior and Organization, Vol. 142, 10.2017, p. 404-424.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Genetic and environmental influences on household financial distress
AU - Xu, Yilan
AU - Briley, Daniel Andrew
AU - Brown, Jeffrey R
AU - Roberts, Brent W
PY - 2017/10
Y1 - 2017/10
N2 - Heterogeneity of household financial outcomes emerges from various individual and environmental factors, including personality, cognitive ability, and socioeconomic status (SES), among others. Using a genetically informative data set, we decompose the variation in financial management behavior into genetic, shared environmental and non-shared environmental factors. We find that about half of the variation in financial distress is genetically influenced, and personality and cognitive ability are associated with financial distress through genetic and within-family pathways. Moreover, genetic influences of financial distress are highest at the extremes of SES, which in part can be explained by neuroticism and cognitive ability being more important predictors of financial distress at low and high levels of SES, respectively.
AB - Heterogeneity of household financial outcomes emerges from various individual and environmental factors, including personality, cognitive ability, and socioeconomic status (SES), among others. Using a genetically informative data set, we decompose the variation in financial management behavior into genetic, shared environmental and non-shared environmental factors. We find that about half of the variation in financial distress is genetically influenced, and personality and cognitive ability are associated with financial distress through genetic and within-family pathways. Moreover, genetic influences of financial distress are highest at the extremes of SES, which in part can be explained by neuroticism and cognitive ability being more important predictors of financial distress at low and high levels of SES, respectively.
KW - Behavior genetics
KW - Cognitive ability
KW - Household finance
KW - Personality traits
KW - Socioeconomic status
UR - http://www.scopus.com/inward/record.url?scp=85031096704&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85031096704&partnerID=8YFLogxK
U2 - 10.1016/j.jebo.2017.08.001
DO - 10.1016/j.jebo.2017.08.001
M3 - Article
AN - SCOPUS:85031096704
VL - 142
SP - 404
EP - 424
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
SN - 0167-2681
ER -