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on Financial Literacy and Education |
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Issue of 2026–01–05
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Yasmin (Department of Sharia Economics, Faculty of Islamic Economics and Business, Islamic State University (UIN) Sunan Kalijaga); Muhammad Ali Mustofa (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada); Amirullah Setya Hardi (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: | The nexus between financial inclusion, income inequality, and poverty remains debated, especially in developing economies with diverse regional contexts. This study examines the impact of financial inclusion on inequality and poverty across 33 Indonesian provinces using panel data. We estimate Fixed-Effects and Generalized Method of Moments (GMM) models to address unobserved heterogeneity and potential endogeneity. Financial inclusion is proxied by deposits per capita, while key outcomes are provincial income inequality and poverty rates. Results show a significant negative association between financial inclusion and both inequality and poverty. Regional heterogeneity is evident: the poverty-reducing effects of financial inclusion are stronger in Eastern Indonesia than in the more developed Western region. These findings highlight the need for region-specific policies that expand affordable financial access, strengthen financial literacy, and deepen financing for micro, small, and medium enterprises (MSMEs) to support inclusive growth. Future research should assess the roles of fintech and Islamic finance, evaluate how financial inclusion shapes MSME performance, and rigorously examine the effectiveness of Indonesia’s National Strategy for Financial Inclusion to inform progress toward the Sustainable Development Goals. |
| Keywords: | Financial Inclusion, Income Inequality, Poverty, Fixed-Effect Model, Generalized Method of Moments (GMM) |
| JEL: | G20 D63 I32 C23 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:gme:wpaper:202503005 |
| By: | Zhang, Yaxin |
| Abstract: | Financial literacy has emerged as a critical determinant of economic stability, mobility, and resilience, yet access to formal financial education in U.S. high schools remains uneven and largely discretionary. This paper examines the case of Massachusetts—a state that consistently ranks first in overall educational performance but receives failing marks for financial literacy—to assess whether optional, non-mandated approaches to personal finance education can deliver equitable outcomes. Drawing on national empirical literature, state-issued policy reports, and a localized case study, this paper argues that policy optionality is the central mechanism through which financial literacy efforts in the Commonwealth have stagnated and declined. Indeed, this paper further concludes that a standalone financial literacy graduation requirement represents the most effective and evidence-based mechanism for translating existing efforts into universal access, particularly as the Commonwealth reconsiders graduation frameworks in the post-MCAS era. |
| Date: | 2025–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:vgk9p_v1 |
| By: | Ã kos Aczél (Magyar Nemzeti Bank (Central Bank of Hungary)); Lajos Tamás Szabó (Magyar Nemzeti Bank (Central Bank of Hungary)) |
| Abstract: | We examine peer effects in mortgage borrowing decisions. We find that having financially literate colleagues improves the borrowing decisions of financially less literate co†workers. Interest rates on the mortgage loans of these co†workers are significantly lower than for similar employees, whose peers have lower financial literacy. The magnitude of the effect is economically significant, amounting to roughly 4 to 5 monthly instalments until maturity. The results are heterogeneous: advice is more valuable for borrowers with low mathematical skills, and the peer effect is considerably higher in districts, where competition is weaker among banks. We also find that introducing a standardised loan product can offset the impact of the peer effect by making the decision problem of borrowers less complex. |
| Keywords: | peer effects, skills, borrowing decisions, mortgage loan, standardised loan product |
| JEL: | J24 G21 G41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mnb:wpaper:2025/3 |
| By: | Michael Barczay; Shafik Hebous; Fayçal Sawadogo; Jean-Francois Wen |
| Abstract: | Mobile money has become a central digital alternative to traditional banking in developing countries, yet several African governments have introduced taxes on mobile money transactions. We develop a model that characterizes how such taxes affect payment choices and generate excess burden. The model predicts that taxation reduces mobile money use, with elasticities shaped by access to substitutes and transaction costs: banked users substitute into formal alternatives, while unbanked users face higher effective costs, making the tax regressive. Taxation also induces substitution into cash, raising informality. We empirically test these predictions using cross-country survey data and novel transaction-level data from Cameroon, the Central African Republic, and Mali. Results show sharp declines in mobile money usage, with stronger responses among the banked. Unbanked and rural users bear a disproportionate burden. We use the empirical estimates to gauge the excess burden of the tax, which we quantify at 35% of revenue - highlighting its significant efficiency cost alongside its regressive impact. |
| Keywords: | mobile money tax, financial inclusion, transaction tax |
| JEL: | H27 O16 G20 E42 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12322 |
| By: | Constanza Martínez-Ventura; Ligia Alba Melo-Becerra |
| Abstract: | Este estudio analiza los factores que determinan la adopción de las billeteras móviles y otros servicios de pago en Colombia. Se utilizan modelos de econometría espacial para evaluar la heterogeneidad territorial usando datos departamentales, y técnicas de Machine Learning (Decision Tree y Random Forest) para identificar patrones individuales a partir de microdatos. Los resultados evidencian una alta heterogeneidad territorial, asociada a la cobertura de internet, educación y condiciones económicas. A nivel individual, la adopción depende principalmente del ingreso, la edad, el género y la percepción de los individuos sobre el sistema financiero. Si bien los productos tradicionales como la tarjeta débito presentan barreras de acceso operativas y culturales, las billeteras móviles muestran mayor adopción entre jóvenes con familiaridad digital y disposición al uso de nuevas tecnologías. *****ABSTRACT: This study analyzes the factors that determine the adoption of mobile wallets and other payment services in Colombia. Spatial econometric models are used to assess regional heterogeneity using regional data, and machine learning techniques (Decision Tree and Random Forest) are applied to identify individual-level patterns based on microdata. The results reveal significant regional heterogeneity, associated with internet coverage, education, and economic conditions. At the individual level, adoption is primarily influenced by income, age, gender, and individuals’ perceptions of the financial system. While traditional financial products such as debit card face operational and cultural barriers, mobile wallets show higher adoption among younger users who are digitally literate and open to using new technologies. |
| Keywords: | Billeteras móviles, instrumentos de pago, econometría espacial, machine learning, Mobile wallets, payment instruments, spatial econometrics |
| JEL: | C23 C40 G20 G50 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1339 |
| By: | Tommaso Gasparini; Aymeric Ortmans; Arthur Saint-Guilhem |
| Abstract: | We present a new “financial impulse index” (FII) for the euro area that aggregates changes in key financial variables based on their impact on real GDP growth. The FII suggests that financial impulse has now returned close to neutral. <p> Nous présentons un nouvel « indice d’impulsion financière » (IIF) pour la zone euro qui agrège les évolutions de variables financières-clés en fonction de leur impact sur la croissance du PIB en volume. L’IIF suggère que l’impulsion financière est désormais redevenue presque neutre dans la zone euro. |
| Date: | 2025–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:417 |