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on Financial Literacy and Education |
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Issue of 2025–12–15
three papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Das, Nandini; Gupta, Anubhab; Mingo, Cristobal; Zhu, Heng |
| Keywords: | International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343901 |
| By: | Bartscher, Alina (Frankfurt School of Finance and Management); Mann, Katja (Department of Economics, Copenhagen Business School) |
| Abstract: | More and more countries around the world switch from defined-benefit, pay-as-yougo pension systems to funded, defined-contribution systems. This implies substantial wealth accumulation, yet simultaneously exposes individuals to investment risk. While it seems natural to expect that individuals’ investment decisions in pension and non-pension accounts are related, there is little empirical evidence. We compile a new microdataset on Danish savers and document how pension and non-pension investment decisions are linked. We find substantial positive spillover effects between risk-taking in pension and non-pension investments. High-return pension savers also earn the highest return on their non-pension savings, driven by active risk choices. Pension and non-pension investment choices are often made at the same time. An important reason for this are joint responses to individual and aggregate events. Additionally, there are direct spillover effects from changes in stock market policies to pension savings behavior, and vice versa. |
| Keywords: | Stock market participation; Pension savings; Portfolio choice; Return heterogeneity; Financial literacy |
| JEL: | D14 E21 G11 G41 G51 J26 |
| Date: | 2025–12–08 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_012 |
| By: | Michael Barczay; Mr. Shafik Hebous; Fayçal Sawadogo; Jean-François 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 Taxes |
| Date: | 2025–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/255 |