The Origins of Savings Behavior

Henrik Cronqvist (First Author), Stephan Siegel (Participant Author)

    Research output: Contribution to journalJournal

    51 Citations (Web of Science)

    Abstract

    Analyzing the savings behavior of a large sample of identical and fraternal twins, we find that genetic differences explain about 33 percent of the variation in savings propensities across individuals. Individuals are born with a persistent genetic predisposition to a specific savings behavior. Parenting contributes to the variation in savings rates among younger individuals, but its effect decays over time. The environment when growing up (e.g., parents' wealth) moderates genetic effects. Finally, savings behavior is genetically correlated with income growth, smoking, and obesity, suggesting that the genetic component of savings behavior reflects genetic variation in time preferences or self-control.
    Original languageEnglish
    Pages (from-to)123-169
    JournalJournal of Political Economy
    Volume123
    Issue number1
    DOIs
    Publication statusPublished - 2015

    Corresponding author email

    hcronqvist@ceibs.edu

    Keywords

    • CHORION TYPE
    • FIELD EXPERIMENT
    • GENETIC-VARIATION
    • INCOME
    • LIFETIME PORTFOLIO SELECTION
    • STOCK-MARKET PARTICIPATION
    • TIME PREFERENCE
    • TWINS
    • UNITED-STATES
    • WEALTH

    Indexed by

    • FT
    • ABDC-A*
    • Scopus
    • SSCI

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