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on Financial Literacy and Education |
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Issue of 2021‒08‒09
five papers chosen by |
| By: | Samantha Horn (Department of Social and Decision Sciences, Carnegie Mellon University); Julian C. Jamison (Department of Economics, University of Exeter); Dean Karlan (Kellog School of Management, Northwestern University); Jonathan Zinman (Department of Economics, Dartmouth College) |
| Abstract: | Is financial knowledge change necessary for lasting behavior change? Or, akin to Friedman's billiard player, can behavior persist "as if" such knowledge is held? We randomize 240 Ugandan young-adult clubs to financial education, savings account access, both, or neither. Each education arm, but not the account-only arm, increases members' financial knowledge and trust at one-year. At five-years, knowledge effects essentially disappear and trust effects weaken. However, savings, wealth and income increase for each treatment at both one and five years, suggesting multiple viable paths to statistically indistinguishable average outcomes and that textbook knowledge change is unnecessary for lasting impacts. |
| Keywords: | financial education, financial literacy, financial access, savings |
| JEL: | D12 D91 O12 |
| Date: | 2021–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2102&r= |
| By: | Khuc, Quy Van; Ho, Hong-Hai; Nguyen, Thuy |
| Abstract: | financial literacy, financial investment, household financial, livelihood, Vietnam |
| Date: | 2021–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:s6cnr&r= |
| By: | Lorenzo Esposito (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore – Banca d'Italia, Milano); Lorenzo Marrese (DISCE, Università Cattolica del Sacro Cuore) |
| Abstract: | Results of behavioral economics pose a strong challenge to mainstream finance theory conclusions. We discuss, theoretically and empirically, the connections of cognitive skills, biases and financial decisions using the Cognitive Reflection Test (Frederick, 2005). In particular, we have chosen overconfidence, risk aversion, bandwagon effect, time preference and money illusion, among the biases most discussed in the literature. The experiment we conducted confirmed a role of the cognitive skills in determining the decision mechanism of the investor although not neatly, especially for more complex biases, such as money illusion. Finally, we expose policy alternatives, focusing on the role of financial education to tackle cognitive biases in finance and monetary policy. |
| Keywords: | cognitive biases, financial education, behavioral economics, CRT |
| JEL: | G41 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie5:dipe0019&r= |
| By: | Kaiser, Tim; Oberrauch, Luis; Pang, Ming Fai; Seeber, Günther |
| Abstract: | We administer an adapted version of the Test of Economic Competence (TEC) to a sample of secondary school students in Hong Kong and study the psychometric properties of the adapted scale relative to test statistics based on a sample of German secondary school students. The results indicate adequate psychometric properties of the adapted measurement scale. Reassuringly, we find no evidence of differential item functioning in the adapted test and student-level correlates of economic competence mirror the results from a large-scale assessment in Germany relying on the original scale. Collectively, these results underscore the construct validity of the adapted test and suggest that the adapted TEC may be well suited to study the economic competence of secondary school students in a variety of educational contexts. |
| Keywords: | Pre-college economic education,economic competence,IRT,economic literacy |
| JEL: | A21 G53 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:236205&r= |
| By: | Peralta, Leda |
| Abstract: | Tourism micro, small and medium-sized enterprises (MSMEs) recognize the importance of digital tools to attract tourists, showcase the company and sell products and services. However, they make basic use of these tools to communicate and promote the company, missing opportunities to improve their competitiveness, productivity and sustainability. This study analyses the state of the digital transformation of tourism MSMEs in the member States of the Central American Integration System (SICA), both their internal capacities and external conditions that affect their ability to innovate. The study follows a cross-cutting gender analysis and describes the innovation capacity of rural tourism companies. |
| Keywords: | TURISMO, INNOVACIONES TECNOLOGICAS, TECNOLOGIA DIGITAL, PEQUEÑAS EMPRESAS, EMPRESAS MEDIANAS, INTERNET, TECNOLOGIA DE LA INFORMACION, TECNOLOGIA DE LAS COMUNICACIONES, BANDA ANCHA, COMERCIO ELECTRONICO, INCLUSION FINANCIERA, GENERO, ESTRATEGIA EMPRESARIAL, FOMENTO DEL TURISMO, TOURISM, TECHNOLOGICAL INNOVATIONS, DIGITAL TECHNOLOGY, SMALL ENTERPRISES, MEDIUM ENTERPRISES, INTERNET, INFORMATION TECHNOLOGY, COMMUNICATION TECHNOLOGY, BROADBAND, ELECTRONIC COMMERCE, FINANCIAL INCLUSION, TOURISM DEVELOPMENT, CORPORATE STRATEGIES, GENDER |
| Date: | 2021–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:47071&r= |