nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2017‒07‒02
two papers chosen by

  1. Portfolio Selection by Japanese Households: Investigation Using Japanese and US Households Questionnaire Survey By Yuichiro Ito; Yasutaka Takizuka; Shigeaki Fujiwara
  2. Financial Literacy Externalities By Haliassos, Michael; Jansson, Thomas; Karabulut, Yigitcan

  1. By: Yuichiro Ito (Bank of Japan); Yasutaka Takizuka (Bank of Japan); Shigeaki Fujiwara (Bank of Japan)
    Abstract: In Japan, cash and deposits continue to be the main financial assets of households. What keeps Japanese households cautious about portfolio allocations? Elucidating the mechanisms behind household behavior is an important issue in discussing the influence of monetary policy. In this study, we outline the analysis by Ito et al. (2017), who examined mechanisms that influence household portfolio selection, using a questionnaire survey for Japanese and US households. The analysis suggests that further improvements in institutional aspects and an increase in financial knowledge, as well as an improvement in market performance and the mitigation of future concerns, are important factors in making the investment environments in Japan more attractive.
    Keywords: Portfolio selection mechanism; relative risk aversion; financial literacy
    JEL: C33 D14 D18 G11
    Date: 2017–06–22
  2. By: Haliassos, Michael; Jansson, Thomas; Karabulut, Yigitcan
    Abstract: This paper uses unique administrative data and a quasi-field experiment of exogenous refugee allocation in Sweden to estimate effects of exposure to financially literate neighbors. It contributes evidence of causal impact of financial literacy and points to a social multiplier of financial education. Exposure promotes saving for retirement in the medium run and stockholding in the longer run, especially when neighbors have economics or business education, but only for educated or male-headed households. Findings point to knowledge transfer rather than mere imitation. We do not find significant effects on income or employment prospects, except for employment in the financial sector.
    Keywords: financial literacy; household finance; Refugees; Social interactions
    JEL: D14 E21 F22 G11 I28
    Date: 2017–06

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