Some Economic Implications of Advances in Genetics

*joint with Center for Economic Design

Abstract:

The paper explores some economic implications of our ever-expanding knowledge of genetics. Scientific research in this area is progressing rapidly: what was the content of science fiction a few years ago is now becoming science fact, and what seemed a distant nightmare is likely to be tomorrow's challenge. The advance in knowledge is providing new insights into how genetics affect economic and social outcomes. This, in turn, impacts upon policy analysis. The paper illustrates potential impacts by considering the how genetic knowledge affects how we conceptualise the design of income taxation. The intentional manipulation of the genetic code is also close to a practical reality and, beyond the obvious moral issues, raises significant economic questions. The paper explores how genetic manipulation may impact upon economic outcomes.