TY - JOUR
T1 - Genetic and environmental influences on household financial distress
AU - Xu, Yilan
AU - Briley, Daniel A.
AU - Brown, Jeffrey R.
AU - Roberts, Brent W.
N1 - Funding Information:
The research project was partially funded by the National Institute of Food and Agriculture (NIFA) at the United States Department of Agricultural (# ILLU-470-367 ). The authors thank Jing Luo for excellent research assistance.
Publisher Copyright:
© 2017 Elsevier B.V.
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
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U2 - 10.1016/j.jebo.2017.08.001
DO - 10.1016/j.jebo.2017.08.001
M3 - Article
C2 - 32863485
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 -