Financial Literacy: An Essential Tool for Informed Consumer Choice?

Lusardi, Annamaria

doi:10.3386/w14084

Cited by 366 publications

(341 citation statements)

References 32 publications

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“…The percentage of those who admitted they did not know the answers was quite high. The findings of the present study are consistent with those of the studies conducted by such researchers as Temizel (2010), Sevim et al (2012), Güler (2015), Lusardi (2008), Wagner (2015). The proportion of those who gave incorrect answer to only one question out of the 11 advanced financial literacy index questions was 47.7%.…”

supporting

confidence: 83%

“…They also do not have sufficient knowledge about such basic economic terms as basic risk diversification. In addition, they also need to be informed about such complicated concepts as the differences between bonds and stocks, investment fund operations and primary asset pricing comparisons Lusardi, 2008). A range of studies into the issue have revealed that those who lack sufficient financial knowledge are not able to save duly for their retirement (Lusardi & Mitchell, 2007), use high-interest loans and experience debt problems (Moore, 2003), follow the financial advice of their family and friends and invest less in stocks (Van Rooij et al 2011).…”

mentioning

confidence: 99%

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Financial Literacy Level of Individuals and Its Relationships to Demographic Variables

Yıldırım¹,

Bayram²,

Oğuz³

et al. 2017

Mediterranean Journal of Social Sciences

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supporting

confidence: 83%

mentioning

confidence: 99%

Financial Literacy Level of Individuals and Its Relationships to Demographic Variables

Yıldırım¹,

Bayram²,

Oğuz³

et al. 2017

Mediterranean Journal of Social Sciences

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“…Consequently, the improvement of financial literacy has evolved to an important policy goal in recent years (Lusardi, 2008;. Existing research has established a strong link between financial literacy and financial decision-making.…”

Section: Introductionmentioning

confidence: 99%

The Long Shadow of Socialism: On East-West German Differences in Financial Literacy

Bucher‒Koenen

Lamla

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:We use the German re-unification as a natural experiment to understand drivers of financial literacy accumulation. With the transformation from a planned to a market-based economy in 1990, the incentives to invest in financial literacy were changed exogenously for East Germans and remained the same for West Germans. Our results show that even 20 years after reunification there is evidence for a significant financial literacy gap between East and West. While some groups, for instance women and those who have migrated from the East to the West, have mastered to catch up with their West German peers, others did not. Differences in financial literacy are present across all educational groups and at the top as well as the bottom of the income distribution. Based on models which account for factors that are commonly integrated in financial literacy theory, we decompose the financial literacy gap. Most of the gap remains unexplained. Thus, an extension of empirical and theoretical models that allow for the inclusion of differences in attitudes and values might be crucial to improve our understanding of financial literacy acquisition.

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“…This was highlighted by Lusardi (2008) and Japelli (2010), among others. Financial literacy or, more precisely, the lack of it, can explain the kind of de…ciency that consists in linearizing an exponential series in time.…”

Section: Anomalies In Financial Evaluationmentioning

confidence: 80%

Exponential discounting bias

2013

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We address intertemporal utility maximization under a general discount function that nests the exponential discounting and the quasi-hyperbolic discounting cases as particular speci…cations. The suggested framework intends to capture one important anomaly typically found when addressing the way agents discount the future, namely the evidence pointing to the prevalence of decreasing impatience. The referred anomaly can be perceived as a bias relatively to what would be a benchmark exponential discounting setting, and is modeled as such. The general discounting framework is used to address a standard optimal growth model in discrete time. Transitional dynamics and stability properties of the corresponding dynamic setup are studied. An extension of the standard growth model to the case of habit persistence is also considered.

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Financial Literacy: An Essential Tool for Informed Consumer Choice?

Cited by 366 publications

References 32 publications

Financial Literacy Level of Individuals and Its Relationships to Demographic Variables

Financial Literacy Level of Individuals and Its Relationships to Demographic Variables

The Long Shadow of Socialism: On East-West German Differences in Financial Literacy

Exponential discounting bias

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