nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2023‒04‒24
three papers chosen by

  1. Poverty and socio-financial inclusion in Japan By Ciula, Raffaele
  2. Public Policies for Financial Inclusion in Latin America and Asia: What Lessons for Developing Countries? By Lahrour Khalid
  3. The need for data products in personal finance. By Edouard Ribes

  1. By: Ciula, Raffaele
    Abstract: Poverty has always been a sensitive issue in Japan, in fact the first official statistics on this phenomenon have been released late in time compared to many developed countries. Similarly, the most important Japanese public assistance scheme is quite narrow, stigmatizing and discretionary, which suggests a cautious attitude towards poverty and the poor. In this regard, the scholars have pointed out some factors associated with poverty, such as income, employment, and education, but the association between financial characteristics of Japanese people and poverty is still under-researched. As financial inclsion has always been an important feature in Japan, and can be an important driver of poverty avoidance, the goal of this article is about inspecting the role of formal and informal financial instruments, including the ability to save, in reducing the likelihood of falling into poverty. Also, it analyzes the role of financial access in decreasing the detrioration of being well-off in Japan, using the World Bank dataset, and employing a logit regression analysis. The main findings of this article show that formal financial instruments, the savings capacity, and tertiary education are important drivers of reducing the probability of falling into poverty. Similarly, education, and financial instruments play a pivotal role in avoiding the movement from being well-off to becoming middle-class in Japan. Therefore, this article suggests that savings, the education system, and financial instruments are still a buffer against poverty in Japan. Further, it points out that probably public interventions which encourage financial inclusion should be strengthened.
    Keywords: Poverty; Savings; Financial Determinants, Education; Capabilities
    JEL: D60
    Date: 2023–03–16
  2. By: Lahrour Khalid (UH2MC - Université Hassan II [Casablanca])
    Abstract: The banking crises in many developing countries have prompted discussions about necessary reforms in the financial sector. This has led to a resurgence of interventionist public policies that focus on the financial sector and are deployed through interactions with other collective or individual actors. As a result, providing banking services to a wider clientele through financial inclusion as a public good has become a topic of political debate and a public policy agenda (Sodokin Koffi, 2022). This is because excluding people from accessing financial services is not considered a public good in economic terms (Desmarais-Tremblay, 2017; Ülgen, 2020). International opinion is re-examining the need for government intervention in certain economic sectors in the face of the challenges associated with the Millennium Goals. This trend is also reflected in the words of the World Bank, which, while persisting in its support for the neoclassical model of state disengagement and the primacy of the market, is now more inclined to place greater emphasis on a redistributive model that incorporates a social dimension into public policy. This paper looks at interventionist public policies for financial inclusion in two regions, Latin America and Asia, to present the different contributions and limitations of programs and policies for developing access to finance and the use of financial supply by the excluded from formal finance and the vulnerable population in India, Mexico and Peru to focus on the role of public actors and how this translates into financial supply in the face of financial inclusion issues. The methodology used in this paper consists of a literature review of financial inclusion policies and programs in India, Mexico and Peru. The study is based on qualitative and quantitative data available in official reports, academic publications and research conducted by governmental and non-governmental organizations.
    Abstract: Les crises bancaires dans de nombreux pays en développement ont suscité des discussions sur les réformes nécessaires dans le secteur financier. Cela a conduit à une réapparition de politiques publiques interventionnistes qui se concentrent sur le secteur financier et qui se déploient via des interactions avec des acteurs collectifs ou individuels. En conséquence, le fait d'offrir des services bancaires à une clientèle plus large grâce à l'inclusion financière en tant que bien public est devenu un sujet de débat politique et un programme de politique publique (Sodokin Koffi, 2022). Cela est dû au fait qu'exclure des personnes de l'accès aux services financiers n'est pas considéré comme un bien public sur le plan économique (Desmarais-Tremblay, 2017 ; Ülgen, 2020). L'opinion internationale est en train de réexaminer la nécessité d'intervention gouvernementale dans certains secteurs économiques face aux défis liés aux objectifs du millénaire.Cette tendance se reflète également dans les propos de la Banque mondiale, qui, tout en persistants dans son soutien au modèle néoclassique de désengagement de l'État et de primauté du marché, est maintenant plus encline à accorder plus d'importance à un modèle redistributif qui intègre une dimension sociale dans les politiques publiques. Cet article s'intéresse aux politiques publiques interventionnistes en matière d'inclusion financière dans deux régions, l'Amérique latine et l'Asie, il s'agira de présenter des différents apports et limites des programmes et politiques de développement d'accès au financement et l'usage de l'offre financière par les exclus de financement formel et la population vulnérable en Inde, Mexique et Pérou afin de mettre en évidence le rôle des acteurs publics et la façon dont cela se reflète dans l'offre financière en réponse aux défis de l'inclusion financière. La méthodologie utilisée dans cet article consiste en une revue de la littérature sur les politiques et programmes de l'inclusion financière en Inde, au Mexique et au Pérou. Cette étude se base sur des données qualitatives et quantitatives disponibles dans les rapports officiels, les publications universitaires et les recherches menées par des organisations gouvernementales et non gouvernementales.
    Keywords: Public Policy, Financial Inclusion, Financial Exclusion, Microfinance, Poverty, Growth., Politique publique, Inclusion financière, Exclusion financière, Pauvreté, Croissance
    Date: 2023–03–01
  3. By: Edouard Ribes (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Background context: Current societal challenges around healthcare, education and retirement require households to increasingly leverage personal finance instruments. To meet this trends the lending, insurance and investment industries need to become more efficient and affordable. Specific knowledge gap the work aims to fill: To date, the distribution chains of financial instruments remains costly and inefficient. To transform, the associated industries need to further leverage digital medias to accelerate products distribution and maintenance. Some of the benefits of digitalization have already been capture & depicted in the recent literature sitting at the frontier between personal finance and financial technologies. However the scope of those studies has so far been limited to the distribution of those instruments & there has been little discussion about the opportunities associated to the maintenance of financial contracts, notably through the structuration of data products/ warehouses. This is a gap this article aims to address. Methods used in the study: This paper leverage standard economic modeling techniques and option theory to describe the impact of digital medias and notably data products on the financial instruments brokerage system. It also leverages order of magnitude founds in the literature to perform a high level calibration of those models to one of the Big 5 European financial market, namely the French investment industry. Key findings: The proposed models show 3 stylized facts about data products when applied to the French investment industry. First, such a market can only support two data product suppliers. Second, it comes with a large asymmetry in prices (prices differ by a factor 2 or 4 between actors) and clients profiles between the two data suppliers. Third, the market is not completely efficient as its equilibrium results in about 35\% of the market not being equipped with a data products. Implications: Data products can yield a 10 to 20% productivity increase for independent financial advisors and brokers distributing financial instruments. Those gains will likely be passed in some form to households, thereby increasing the overall efficiency of the financial system and supporting households financial professionalization.
    Keywords: Personal finance, households economics, wealth, technological change, financial services, The proposed models show 3 stylized facts about data
    Date: 2023–03–01

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