Understanding the Correlation between Alzheimer's Disease Polygenic Risk, Wealth, and the Composition of Wealth Holdings

49 Pages Posted: 12 Feb 2019 Last revised: 1 Apr 2023

See all articles by Su Shin

Su Shin

University of Utah

Dean R. Lillard

Ohio State University (OSU) - Department of Human Sciences

Jay Bhattacharya

Stanford University - Center for Primary Care and Outcomes Research; National Bureau of Economic Research (NBER)

Date Written: February 2019

Abstract

We investigate how the genetic risk of developing Alzheimer's Disease (AD) relates to saving behavior. Using nationally representative data from the 1992-2014 Health and Retirement Study (HRS), we find that genetic predisposition for AD correlates with, but is not causally related to older individuals’ wealth holdings. People with higher Alzheimer’s Disease polygenic risk score (PGS) hold roughly 9 percent more wealth in CDs (hands-off assets) and around 11 percent, 15 percent, and 7 percent less wealth in stocks, IRAs, and other financial assets (hands-on assets) respectively. We explore three hypotheses that could explain these correlations. We hypothesize that people with high risk of AD choose different portfolios because: (i) they know their polygenic risk of developing Alzheimer’s Disease and related dementia, (ii) they have lower cognitive capacity, and (iii) the genome-wide association studies (GWAS) process that generated the Alzheimer’s Disease PGS failed to fully account for the aging process. Our extended model results do not support the first two hypotheses. Consistent with the third hypothesis, the interaction between age and the Alzheimer’s Disease PGS explains the correlation between genetic traits and asset holdings.

Suggested Citation

Shin, Su Hyun and Lillard, Dean R. and Bhattacharya, Jayanta, Understanding the Correlation between Alzheimer's Disease Polygenic Risk, Wealth, and the Composition of Wealth Holdings (February 2019). NBER Working Paper No. w25526, Available at SSRN: https://ssrn.com/abstract=3332273

Su Hyun Shin (Contact Author)

University of Utah ( email )

225 South 1400 East
Alfred Emery Building, Room 236
Salt Lake City, UT 84112
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Dean R. Lillard

Ohio State University (OSU) - Department of Human Sciences ( email )

United States

Jayanta Bhattacharya

Stanford University - Center for Primary Care and Outcomes Research ( email )

Center for Health Policy
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Stanford, CA 94305-6019
United States
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National Bureau of Economic Research (NBER)

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United States

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