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The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills

By Mikkel Aagaard Houmark, Victor Ronda, and Michael Rosholm

American Economic Review, February 2024

This paper studies the interplay between genetics and family investments in the process of skill formation. We model and estimate the joint evolution of skills and parental investments throughout early childhood. We document three genetic mechanisms: the ...

Old Age Risks, Consumption, and Insurance

By Richard Blundell, Margherita Borella, Jeanne Commault, and Mariacristina De Nardi

American Economic Review, February 2024

In the United States, after age 65, households face income and health risks, and a large fraction of these risks are transitory. While consumption significantly responds to transitory income shocks, out-of-pocket medical expenses do not. In contrast, both...