|
on Financial Literacy and Education |
|
Issue of 2026–07–27
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Khondaker Golam Moazzem; Faisal Quaiyyum; Abrar Ahammed Bhuiyan |
| Abstract: | Access to finance in Bangladesh’s agricultural mechanization sector is shaped by stakeholders’ preferences for alternative financial instruments. Local producers face the greatest financial constraints, primarily due to double taxation on raw materials and product sales. Survey results from 196 respondents show strong preference for asset-based finance and machine leasing, while other instruments remain largely underutilized. Econometric analysis reveals that education, financial literacy, government support, and firm characteristics significantly influence adoption. |
| Keywords: | Agricultural Mechanization, Access Finance, Financial Instruments, Machine Leasing, Asset Finance, Financial Inclusion, Financial Literacy, Government Support, Supply Chain, Bangladesh Agriculture |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:76 |
| By: | OECD |
| Abstract: | Artificial intelligence (AI) is transforming how consumers access and use financial information, education and advice for personal financial decision making. While consumers’ increasing use of AI tools and AI-generated content for personal finance brings opportunities in terms of accessibility, personalisation and decision making, it also increases risks related to bias, hallucinations, commercial influence, data privacy and exclusion, with uncertain benefits on long-term financial well-being. This policy paper provides policymakers and stakeholders with an overview of current trends, opportunities and risks in the use of AI in personal finance and in the design and delivery of financial education. It also proposes a set of financial literacy competencies to support the use of AI in personal financial decision making. |
| JEL: | G53 |
| Date: | 2026–07–21 |
| URL: | https://d.repec.org/n?u=RePEc:oec:comaaa:62-en |
| By: | Guo, Xiaomin; Huang, Yi; Sun, Qi; Yeung, Bernard |
| Abstract: | This paper examines the impact of a digital platform’s transmission of financial knowledge on users’ stock market participation and investment performance. Leveraging a Chinese platform’s randomly distributed prompts as an instrument, we demonstrate that access to financial information increases stock investment, enhances portfolio diversification, and improves risk-adjusted returns, even among older, less educated and less affluent users. Although initial responses to the prompts are modest, sustained exposure overcomes inertia and drives considerable engagement. Digitalization thus holds promises for democratizing finance by providing scalable, low-cost financial education that helps individuals make more informed investment decisions. |
| JEL: | D14 G11 O33 Q55 G53 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20651 |
| By: | Gallipoli, Giovanni; Gomez-Cardona, Sebastian |
| Abstract: | We study the dynamic formation of financial competencies and show that their accrual over the life cycle does not necessarily align with educational attainment. While richer and educated households are, on average, more financially literate, the accumulation of skills varies significantly with risk tolerance and experimentation. Using data on wealth and portfolio returns, we estimate that the accumulation of financial skills over the life cycle accounts for 1/5 of cross-sectional wealth inequality by age 60. |
| Keywords: | Inequality; Skills |
| JEL: | E21 G5 G11 G51 H31 I24 J18 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20422 |
| By: | Jessica Piccolo; Alessia Russo; Eleonora Granziera; Efrem Castelnuovo |
| Abstract: | We design a novel survey to study how education shapes households' joint beliefs about inflation, unemployment, and monetary policy transmission. College-educated respondents perceive the inflation-unemployment trade-off and hold views similar to professional forecasters, while less educated respondents favor supply-side narratives. When exposed to hypothetical monetary policy interventions, the more educated update expectations and adjust consumption and saving in line with standard models, whereas the less educated display greater rigidity. This education gradient persists after controlling for information sources, financial literacy, and institutional trust, pointing to differences in abstract reasoning. Open-ended responses are consistent with college-educated households holding mental models aligned with standard macroeconomic theory. |
| Keywords: | household expectations, education, mental models, monetary policy transmission, belief heterogeneity, survey data |
| JEL: | D83 D84 E31 E52 I21 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2026-52 |
| By: | George, Siddharth Eapen; Kirti, Divya; Lange, Nils; Martínez Pería, Maria Soledad; Vijayaraghavan, Rajesh |
| Abstract: | We study how access to bank financing affects product innovation in a developing country context by analyzing a reform that broadened credit eligibility for many small Indian manufacturing firms. Newly eligible firms borrow more but, on average, do not introduce new or more complex products or expand product scope. Many firms appear to operate below efficient scale and use credit to expand existing product lines rather than innovate. Moreover, most firms face several additional barriers that weaken the impact of credit on innovation. Among firms that do not face these additional barriers, credit access boosts innovation, as in advanced economies. |
| Keywords: | Credit; Financial frictions; Financial inclusion; Innovation |
| JEL: | D22 G38 H25 L25 L52 L60 O3 O14 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20744 |