nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2023‒07‒17
six papers chosen by

  1. The Anatomy of the Financial Inclusion Gap in the Caucasus and Central Asia By Mr. Tigran Poghosyan
  2. The Effect of Financial Literacy and Financial Behavior on Financial Resilience in MSMEs (Study of MSME Actors in Ngagel Village, Surabaya) By Aulia, Rizki Luthfi; Agatha, Meiyola Krisma; , Nurfadilah; Pandin, Maria Yovita R
  3. Financial Inclusion and Women Economic Empowerment in Ghana By Zelu, Barbara Ama; Iranzo, Susana; Pérez Laborda, Alejandro
  4. The Influence of Financial Intelligence and Literacy on MSME Financial Resilience in the Jambangan Culinary Tourism Center, Surabaya By Estianingtyas, Farah; Jofanka, Alinda Dwi; Sa’diyah, Shofiatus; Pandin, Maria Yovita R
  5. Income Risk, Precautionary Saving, and Loss Aversion – An Empirical Test By Marcela Ibanez; Sebastian O. Schneider
  6. Analysis of socio-economic factors affecting deprivation of school attendance across Indian districts and its implication on public expenditure By Kumar, Chetan; K.B., Rangappa

  1. By: Mr. Tigran Poghosyan
    Abstract: This paper analyses how financial inclusion in the Caucasus and Central Asia (CCA) compares to peers in Central and Eastern Europe (CEE). Using individual-level survey data, it shows that the probability of being financially included, as proxied by account ownership in financial institutions, is substantially lower across gender, income groups, and education levels in all CCA countries relative to CEE comparators. Key determinants of this financial inclusion gap are lower financial and human development indices, weak rule of law, and physical access to bank branches or ATMs. This suggests that targeted policies aimed at boosting financial and human development, strengthening the rule of law, and supporting fintech solutions can broaden financial inclusion in the CCA.
    Keywords: Caucasus and Central Asia; financial inclusion; financial access; estimation result; CEE comparator; CCA country; IMF working paper 23/109; CEE peer; Financial sector development; Financial account; Financial sector; Income; Global; Central Asia and the Caucasus
    Date: 2023–05–26
  2. By: Aulia, Rizki Luthfi; Agatha, Meiyola Krisma; , Nurfadilah; Pandin, Maria Yovita R
    Abstract: One of the economic sectors that has attracted the most attention is the manufacturing sector, especially Micro, Small and Medium Enterprises (MSMEs). MSMEs are able to survive the existing financial crises. In addition, MSMEs also make a very large contribution to the Indonesian economy. This article aims to determine the effect of Financial Literacy and Financial Behavior on Financial Resilience in MSMEs in Surabaya, especially in the Ngagel Village. The objects that become variables in this study are Financial Literacy, Financial Behavior, and Financial Resilience. The subjects in this study were MSME actors. This article is a quantitative descriptive using primary data in the form of a questionnaire distributed to MSME actors. The results of this article can be concluded that financial literacy and financial behavior have a positive effect on Financial Resilience in MSMEs to improve behavior in managing business finances well for financial well-being.
    Date: 2023–06–15
  3. By: Zelu, Barbara Ama; Iranzo, Susana; Pérez Laborda, Alejandro
    Abstract: Although the impact of micro-credit and direct cash transfers on women economic empowerment has been extensively studied. The impact of just having either a formal or informal bank account remains relatively understudied. This paper uses a detailed national representative data of female household heads in Ghana to analyze how having a formal and informal bank account economically empowers women. Using propensity score matching, our results elicit that having a bank account encourages women to be employed and also increases their per capita income. The results also indicate that, the level of education and sector of employment positively contributes to women’s economic empowerment. Additionally, the result reveal that female household heads living in the cities are more economically empowered than their counterpart living in the rural areas. Keywords: Financial Inclusion · Women Economic Empowerment · Gender Equality · Ghana Jel Codes : D14, D63, G21, G22, O12, O16
    Keywords: Dones-Condicions econòmiques, Ghana, 331 - Treball. Relacions laborals. Ocupació. Organització del treball,
    Date: 2022
  4. By: Estianingtyas, Farah; Jofanka, Alinda Dwi; Sa’diyah, Shofiatus; Pandin, Maria Yovita R
    Abstract: The purpose of this study was to determine the effect of intelligence and financial literacy on the financial resilience of Micro, Small and Medium Enterprises in the Jambangan Culinary Tourism Center, Surabaya. This research was conducted on the type of business, namely in the culinary or trading business sector with a sample size of 30 micro, small and medium enterprises. In this study using a quantitative approach method. This study uses multiple linear regression techniques for hypothesis analysis. The results of the study show that intelligence and financial literacy have a high impact of 57, 1% on the financial resilience of Micro, Small and Medium Enterprises in the Jambangan Culinary Tourism Center, Surabaya.
    Date: 2023–06–15
  5. By: Marcela Ibanez (University of Goettingen); Sebastian O. Schneider (Max Planck Institute for Research on Collective Goods)
    Abstract: This paper empirically examines the behavioral precautionary saving hypothesis that uncertainty about future income triggers an increase in saving because of loss aversion. Guided by the theoretical model of Koszegi and Rabin (2009), we first extend their theoretical analysis to also consider the internal margin, i.e., the strength, of loss aversion, and then empirically study the relation between income risk, experimentally elicited loss aversion, and precautionary savings. We do so using a sample of 640 individuals from the low-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals, and that this increase in savings grows with the degree of loss aversion. An accompanying laboratory experiment confirms that an exogenous increase in income risk causally leads to this observed pattern. Thus, consistent with the theoretical predictions derived from the model of Koszegi and Rabin (2009), but in contrast to common assumptions, our findings establish that loss aversion is not necessarily an obstacle to saving, and thus identify new approaches of increasing saving among individuals with low financial education.
    Keywords: Reference-dependent utility, expectations, consumption plans, precautionary savings, loss aversion, risk preferences, income risk, low-income, Bogotá, experiment
    JEL: D11 D14 D15 D81 D90 G40 J65 O16
    Date: 2023–06–28
  6. By: Kumar, Chetan; K.B., Rangappa
    Abstract: Education is seen as the best mechanism to achieve upward economic and social mobility by vulnerable masses. Even by the government, education is regarded as a proactive initiative through which it can hope to address the problem of regional imbalance in a sustainable manner. Many prior studies have identified various factors which have played significant role in depriving education for masses. However, studies which have identified magnitude of the factors impact in depriving of education are scarce. The present study identifies the causal factors which have deprived school attendance of students among households across Indian districts along with the magnitude of their impact. Through present study we were able to infer that nutrition of children, maternal health, years of schooling and financial inclusion of household played a significant role in affecting their school attendance. Through predictive probability, we were able to assess the magnitude of the impact of the following factors and their implications on public expenditure.
    Keywords: Socio-Economic Factors, Horizontal spread, School attendance, Indian Districts, Binomial Logistic Regression, Predictive Probability
    JEL: I24 I25 I28
    Date: 2022–06–22

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