Moral Hazard Heterogeneity: Genes and Health Insurance Influence Smoking after a Health Shock

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Decision-making in the realm of health behaviors, such as smoking or drinking, is influenced both by biological factors, such as genetic predispositions, as well as environmental factors, such as financial liquidity and health insurance status. Pietro Biroli shows how the choice of smoking after a cardio-vascular health shock is jointly determined by the interplay between these biological and environmental constraints.

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