nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2018‒12‒17
five papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Financial literacy externalities By Chaliasos, Michael; Jansson, Thomas; Karabulut, Yigitcan
  2. FinTech in Sub-Saharan African Countries; A Game Changer? By Rodolfo Maino; Alexander Massara; Hector Perez Saiz; Preya Sharma; Amadou N Sy
  3. Ageing, gender and financial literacy in Japan By Shohei Okamoto; Kohei Komamura
  4. IFAD RESEARCH SERIES 13 - Graduation models for rural financial inclusion By El Harizi, K.; Yan, X.
  5. IFAD RESEARCH SERIES 10 - Inclusive finance and inclusive rural transformation By Turvey, C. G.

  1. By: Chaliasos, Michael; Jansson, Thomas; Karabulut, Yigitcan
    Abstract: This paper uses unique administrative data and a quasi-field experiment of exogenous allocation in Sweden to estimate medium- and longer-run effects on financial behavior from exposure to financially literate neighbors. It contributes evidence of causal impact of exposure and of a social multiplier of financial knowledge, but also of unfavorable distributional aspects of externalities. Exposure promotes saving in private retirement accounts and stockholding, especially when neighbors have economics or business education, but only for educated households and when interaction possibilities are substantial.Findings point to transfer of knowledge rather than mere imitation or effects through labor, education, or mobility channels.
    Keywords: household finance,financial literacy,social interactions,refugees
    JEL: G11 E21 D14 F22 I28
    Date: 2018
  2. By: Rodolfo Maino; Alexander Massara; Hector Perez Saiz; Preya Sharma; Amadou N Sy
    Abstract: FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry. While it raises concerns on the emergence of vulnerabilities, FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain. Today, FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for the emergence of innovations in other sectors, such as agriculture and infrastructure.
    Keywords: Financial services;Sub-Saharan Africa;Financial inclusion;Technological innovation;FinTech; Financial Technology; Financial Inclusion; Innovation; Sub-Saharan Africa
  3. By: Shohei Okamoto (Graduate School of Economics, Keio University / Research Centre for Financial Gerontology, Keio University / Tokyo Metropolitan Institute of Gerontology); Kohei Komamura (Faculty of Economics, Keio University / Research Center for Financial Gerontology, Keio University)
    Abstract: This study aims to investigate the association of financial literacy with individual characteristics (e.g. age and educational attainment) as well as factors which affect gender differences in financial literacy. The data were derived from the "Financial Literacy Survey 2016" which comprised a sample of Japanese men and women aged between 18 and 79. We found that ageing had an inverse U-shaped relationship with financial literacy and an U-shaped one with the degree of over-confidence on financial literacy. Furthermore, female respondents were likely to be less financially literate than male due to being female itself, and differences in the distributions of factors that affect financial literacy (e.g. education and financial assets) and their responses to financial literacy. Not only strategies to assist individual financial decision makings, considering that financial literacy and cognitive functioning decline as people get older, but right education and information sources at the right time are demanded to support the safe asset building of individuals.
    Keywords: Financial literacy, Financial behaviour, Investment, Ageing, Gender differences
    JEL: D14 D83 D91 G11
    Date: 2018–11–24
  4. By: El Harizi, K.; Yan, X.
    Abstract: Graduation out of chronic poverty has recently been receiving considerable attention by the global development community for its potential synergies with social protection, microfinance and livelihoods development approaches to poverty reduction. This paper examines the evidence regarding the effectiveness of graduation strategies in reducing extreme poverty, with a focus on rural households, and proposes a new analytical framework to support future work on graduation as a learning and adaptation process in development practice.
    Keywords: Agricultural Finance
    Date: 2017
  5. By: Turvey, C. G.
    Abstract: This paper provides an overview of concepts, issues and research on the relationship between financial inclusion and inclusive rural transformation. When considering how the growth of demand for financial services is related to the broader processes of structural and rural transformation, the evidence shows that agricultural credit provides positive returns, but still with small farm and gender biases. Liberalization of financial markets may not have had the desired spillover effects into rural credit, so there may be justification for public intervention. Effective microcredit programmes might also need to be coupled with outreach and technical assistance in order to achieve desired goals and objectives. In addressing how innovations in rural finance contribute to making access to financial services and rural transformation more inclusive, the report focuses on demand relationships. Farmers who use credit have moderately inelastic to elastic demands. Policies that curb interest rates or otherwise lower the cost of credit may encourage credit demand. Research on risk rationing suggests a behavioural aspect to credit that needs to be considered. Policies that fail to consider collateral and risk may fail if risk-rationed farmers will either not borrow at all, or borrow less than optimal amounts of credit. Policies targeting inclusive finance for inclusive transformation should be targeted towards specific problems. If subsidies are required, they must be smart – in the sense of minimizing market distortions – and are best targeted towards lenders as incentives to increase loans in poverty or underserved communities, women borrowers and indigenous peoples. When markets fail, agriculture governments should consider state-run government-sponsored enterprises. Finally, agricultural lenders, including microfinance institutions, must reconsider their approach to disciplined savings and lending activities. Many farmers with credit demand will not borrow because the payment terms do not consider the risk or match the liquidity cycle of planting and harvesting.
    Keywords: Agricultural Finance
    Date: 2017

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