The Economics and Econometrics of Gene-Environment Interplay

Pietro Biroli; Titus Galama; Stephanie von Hinke; Hans van Kippersluis; Cornelius A. Rietveld; Kevin Thom

doi:10.1093/restud/rdaf034

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The Economics and Econometrics of Gene-Environment Interplay

Journal article

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The Economics and Econometrics of Gene-Environment Interplay

Pietro Biroli, Titus Galama, Stephanie von Hinke, Hans van Kippersluis, Cornelius A. Rietveld and Kevin Thom

The Review of economic studies, Vol.93(1), pp.144-180

01/13/2026

DOI: 10.1093/restud/rdaf034

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Abstract

We discuss how to estimate the interplay between genes (nature) and environments (nurture), with an empirical illustration of the moderating effect of school starting age on one's genetic predisposition towards educational attainment. We argue that gene-environment (GxE) studies can be instrumental for (i) assessing treatment effect heterogeneity, (ii) testing theoretical predictions, and (iii) uncovering mechanisms, thereby improving understanding of how (policy) interventions affect population subgroups. Empirically, we find that being old-for-grade and having a higher genetic propensity for education benefits children on assessment tests as they progress through school. In this setting, families appear to increase genetic inequalities while schools seem to reduce them.

Economics

Social Sciences

Business & Economics

Details

Title: Subtitle: The Economics and Econometrics of Gene-Environment Interplay
Creators: Pietro Biroli - University of Bologna
Titus Galama - University of Southern California
Stephanie von Hinke - Institute for Fiscal Studies
Hans van Kippersluis - Erasmus University Rotterdam
Cornelius A. Rietveld - Erasmus University Rotterdam
Kevin Thom - University of Wisconsin–Madison
Resource Type: Journal article
Publication Details: The Review of economic studies, Vol.93(1), pp.144-180
DOI: 10.1093/restud/rdaf034
ISSN: 0034-6527
eISSN: 1467-937X
Publisher: Oxford Univ Press
Number of pages: 37
Grant note: DONNI 851725; GEPSI 946647 / NORFACE DIAL University of Bristol RF1055654; R56AG058726; R01AG078522; R01AG079554 / European Union; European Union (EU) ESSGN 101073237 / European Research Council; European Research Council (ERC) 462-16-100 / NORFACE DIAL Wellcome; Wellcome Trust 217065/Z/19/Z / UK Medical Research Council; UK Research & Innovation (UKRI); Medical Research Council UK (MRC) VIDI.185.044 / National Institute on Aging of the National Institutes of Health; United States Department of Health & Human Services; National Institutes of Health (NIH) - USA; NIH National Institute on Aging (NIA) Dutch National Science Foundation; Netherlands Organization for Scientific Research (NWO)
Language: English
Electronic publication date: 06/11/2025
Date published: 01/13/2026
Academic Unit: Economics
Record Identifier: 9984937926302771

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