  Economists and social scientists have debated the relative importance of
nature (one's genes) and nurture (one's environment) for decades, if not
centuries. This debate can now be informed by the ready availability of genetic
data in a growing number of social science datasets. This paper explores the
potential uses of genetic data in economics, with a focus on estimating the
interplay between nature (genes) and nurture (environment). We discuss how
economists can benefit from incorporating genetic data into their analyses even
when they do not have a direct interest in estimating genetic effects. We argue
that gene--environment (GxE) studies can be instrumental for (i) testing
economic theory, (ii) uncovering economic or behavioral mechanisms, and (iii)
analyzing treatment effect heterogeneity, thereby improving the understanding
of how (policy) interventions affect population subgroups. We introduce the
reader to essential genetic terminology, develop a conceptual economic model to
interpret gene-environment interplay, and provide practical guidance to
empirical researchers.

General Economics;Economics