nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒11‒07
four papers chosen by

  1. Debit and credit card holdings: effects of the Uruguayan Financial Inclusion Law By Cecilia Olivieri; Romina Quagliotti; Graciela Sanroman
  2. The Effect of Economic Incentives, Financial Technology, and Financial Literacy on Millennials' Financial Planning during Covid 19 By Karina Harjanto
  3. Electronic Payment Technology and Tax Compliance : Evidence from Uruguay’s Financial Inclusion Reform By Brockmeyer,Anne; Saenz Somarriba,Magaly Vanessa
  4. Financial Sector Development in Brunei Darussalam: Depth, Access, and Efficiency: A Comparative Analysis By Biswa Nath Bhattacharyay; Madhurima Bhattacharyay

  1. By: Cecilia Olivieri; Romina Quagliotti; Graciela Sanroman
    Abstract: This paper examines the impact of measures implemented in Uruguay to promote financial inclusion. We analyse the changes in terms of access to debit and credit cards and their determinants. We also employ Diff in Diff strategies to assess the effect of a particular measure: the mandatory payment of salaries through bank accounts. We find evidence that financial inclusion has improved during the period analysed, through the expansion of debit cards. We document that the impact was strongest among low-income households and those headed by women or Afro-descendants. We also show that the expansion was greater than that observed in other similar countries. However, we find almost no change in access to credit cards.
    Keywords: Financial inclusion, Household finances, Payment instruments
    JEL: G21 G50 O16
    Date: 2022–05
  2. By: Karina Harjanto (Universitas Multimedia Nusantara, Gading Serpong, 15810, Tangerang, Indonesia Author-2-Name: Maria Stefani Osesoga Author-2-Workplace-Name: Universitas Multimedia Nusantara, Gading Serpong, 15810, Tangerang, Indonesia Author-3-Name: Elisa Tjhoa Author-3-Workplace-Name: Universitas Multimedia Nusantara, Gading Serpong, 15810, Tangerang, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study aims to obtain empirical evidence of the effect of economic incentives, financial technology, and financial literacy on financial planning. Methodology – The data used in this study came from a questionnaire with 113 millennial respondents who live throughout Indonesia. Questionnaires were distributed in 2020 to understand millennial financial planning and the factors influencing it during the Covid-19 pandemic. Findings – This research found that economic incentives did not affect financial planning, while financial literacy and financial planning had a positive and significant effect on financial planning. Novelty – This study is among the first to learn the effect of the Covid-19 pandemic on millennials' finance. Type of Paper - Empirical"
    Keywords: Economic Incentive, Financial Literacy, Financial Planning, Financial Technology, Millennials
    JEL: D01 D14
    Date: 2022–09–30
  3. By: Brockmeyer,Anne; Saenz Somarriba,Magaly Vanessa
    Abstract: Does the digitization of transactions in an economy increase tax compliance This paper studies theeffect of financial incentives on the adoption of electronic payment technology and on tax compliance by firms.Exploiting administrative data and policy variation from Uruguay, the paper shows that i) consumer value-added taxrebates for credit and debit card transactions trigger an immediate 50 percent increase in the number of cardtransactions, ii) firms' use of card machines increases only on the intensive margin, and iii) tax compliance isunaffected. Endogenous card machine adoption and a low share of card sales in total reported sales can rationalize the findings.
    Keywords: Tax Administration,Tax Law,Public Sector Economics,Public Finance Decentralization and Poverty Reduction,Financial Sector Policy,Labor Markets,International Trade and Trade Rules
    Date: 2022–02–24
  4. By: Biswa Nath Bhattacharyay; Madhurima Bhattacharyay
    Abstract: Financial sector development plays an important role in promoting economic growth and welfare of the citizen of a country. On the other hand, financial sector instability or vulnerability, can adversely affect the economic growth and cause major disruptions in the country. This paper examines the financial sector development of Brunei Darussalam in terms of depth, access and efficiency during 2014-2018 based on 24 indicators. This paper starts with the examination of the role of the financial sector in the economic development and financial sector stability and reviews the major literature in this area. A discussion on the policies and strategies for the financial sector development and its regulator, Brunei Darussalam Central Bank (BDCB) and the structure of the financial sector of Brunei Darussalam are presented. Lastly, the paper discusses the major prospects and challenges faced by the banking sector as well as the recommendations. The analysis of the aforementioned indicators shows that the performance of Brunei Darussalam in terms of access to banks and financial inclusion had been, on an average, significantly better than its most peers among Association of Southeast Asian Nations (ASEAN) and Gulf Cooperation Council (GCC) countries. In terms of depth and intermediation, the country, however, remained lower throughout the study period compared to its most ASEAN and GCC countries. The efficiency of banking sector, on an average, remained at a moderate level with most indicators lower compared to several ASEAN and GCC peers. There is a scope for further financial sector development through enhancing depth and efficiency of the banking sector and the development of efficient bond and stock markets. This could bring significant benefits for Brunei Darussalam including enhanced growth.
    Keywords: banking and financial sector development and indicators, economic growth, financial stability, financial depth, access and efficiency, Brunei Darussalam, ASEAN and GCC countries, fintech companies
    JEL: G20 D53 O16 E44 G21 G32
    Date: 2022

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