nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒07‒11
three papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Digital Technologies and Financial Inclusion in Sub-Saharan Africa By Jean-Claude Kouladoum; Muhamadu Awal Kindzeka Wirajing; Tii N. Nchofoung
  2. Time inconsistency and overdraft use: Evidence from transaction data and behavioral measurement experiments By Gill, Andrej; Hett, Florian; Tischer, Johannes
  3. The role of inclusive education in governance for inclusive economic participation: gender evidence from Sub-Saharan Africa By Asongu, Simplice A; Odhiambo, Nicholas M

  1. By: Jean-Claude Kouladoum (University of Moundou, Chad); Muhamadu Awal Kindzeka Wirajing (University of Dschang, Cameroon); Tii N. Nchofoung (University of Dschang, Cameroon)
    Abstract: The study investigates the digital technology-financial inclusion nexus in 43 Sub-Saharan African countries between 2004 and 2019. The methodologies are the Generalized Method of Moment (GMM) to take care of double causality and country heterogeneity and IV-Tobit to take into account the limited range in the dependent variables. At all levels, digital technology measured by ICT indicators of the subscription rate of fixed and mobile telephone users, fixed broadband, internet users and a composite indicator of digitalization have positive significant effects on financial inclusion. A further robustness check is conducted by computing a composite indicator of financial inclusion to determine how it is affected by digital technology. The findings indicate that the rate of financial inclusion in Sub Saharan Africa rises with increasing digital technologies. There should be more investments in terms of promoting financial and technological infrastructures and also in the human capital sector since financial literacy can play an important part in promoting financial stability and inclusive finance in Africa.
    Keywords: Digital Technologies; Financial inclusion; Sub Saharan Africa
    Date: 2022–01
  2. By: Gill, Andrej; Hett, Florian; Tischer, Johannes
    Abstract: Households regularly fail to make optimal financial decisions. But what are the underlying reasons for this? Using two conceptually distinct measures of time inconsistency based on bank account transaction data and behavioral measurement experiments, we show that the excessive use of bank account overdrafts is linked to time inconsistency. By contrast, there is no correlation between a survey-based measure of financial literacy and overdraft usage. Our results indicate that consumer education and information may not suffice to overcome mistakes in households' financial decision-making. Rather, behaviorally motivated interventions targeting specific biases in decision-making should also be considered as effective policy tools.
    Keywords: Household Finance,Paycheck Sensitivity,Fintech,Time Inconsistency,Time Preferences,Experiment,Behavioral Measurement
    JEL: D14 D90 G51 G53
    Date: 2022
  3. By: Asongu, Simplice A; Odhiambo, Nicholas M
    Abstract: This study investigates the relevance of inclusive education in moderating the effect of good governance on female economic inclusion in sub-Saharan Africa. First, inclusive tertiary education modulates: (i) government effectiveness to induce a positive net effect on female labour force participation; (ii) political stability and corruption-control to induce negative net effects on female unemployment; (iii) government effectiveness for a positive net effect on female unemployment and (iv) regulation quality and the rule of law for positive net impacts on female employment. Second, inclusive secondary education moderates: (i) corruption-control for a positive net effect on female labour force participation; (ii) ?voice and accountability?, government effectiveness and corruption-control for negative net impacts on female unemployment; (iii) the rule of law for a positive net effect on female unemployment; (iv) ?voice and accountability?, government effectiveness and corruption-control for positive net effects on female employment. Policy implications are discussed. Inclusive education thresholds for complementary policy policies are also computed and discussed. At these thresholds, inclusive education becomes a necessary but not a sufficient condition to complement governance in order to promote female economic inclusion.
    Date: 2021–12

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