Genes, Cognitive Skills, and Preferences

Abstract

We examine the relationship between cognitive genetic endowments, measured via a validated polygenic index, and economic preferences. Using representative panel data linking genetic information to stated and revealed preferences, we find that higher cognitive PGI scores are associated with greater risk aversion, increased prosociality, and higher likelihood of holding financial assets, but show no consistent relationship with patience. These associations are robust to controls for family background and population stratification. Evidence suggests that genetic endowments and parental resources act as substitutes in preference formation. Our findings highlight genetic contributions to preference heterogeneity and intergenerational economic inequality.