From patriarchy to partnership: Gender equality and household finance

Guiso, Luigi; Zaccaria, Luana

doi:10.1016/j.jfineco.2023.01.002

Cited by 30 publications

(11 citation statements)

References 59 publications

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“…In addition, previous studies find significant gender differences. The financial literacy of men is higher than that of women (Bannier & Schwarz, 2018;Fey et al, 2020;Guiso & Zaccaria, 2023;Hanna et al, 2021). Men show a lower degree of risk aversion and invest more in risky assets (Croson & Gneezy, 2009;Eckel & Grossman, 2008;Halko et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 97%

“…Studies with a focus on housing decisions support this pyramid structure and real estate is by far the most popular investment vehicle for households in Europe (EFAMA, 2020, p. 29;Kaustia et al, 2023). Cocco et al (2005) and Gomes et al (2021) argue that house ownership discourages saving in financial assets as households usually want to first repay their mortgage loan (see Guiso & Zaccaria, 2023;Calvet & Sodini, 2014). However, the influence of voluntary pension plans and whole life insurance contracts is understudied.…”

Section: Literature Reviewmentioning

confidence: 99%

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Households’ Decision on Capital Market Participation: What Are the Drivers? A Multi-Factor Contribution to the Participation Puzzle

Oehler,

Horn

2023

FSR

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Stock market investments are in the spotlight of the household finance literature, although real-world households make other financial decisions of higher relevance. We widen the scope and include decisions related to, e.g., voluntary pension plans, whole life insurance contracts, and housing and investments in other risky assets than stocks, e.g., bonds or mutual funds. Further, we provide a methodology that goes beyond regression analysis by employing a structural equation analysis (SEA) and apply it on data from a broad and representative survey of the German Central Bank. Our SEA allows us to investigate and quantitatively estimate complex relationships and to test several hypotheses simultaneously. Our structural equation model captures about 60% of the variation in the capital market participation decision. The results show that although households' financial literacy and risk aversion are most strongly related to investments in risky assets, further factors such as wealth, voluntary pension plans and whole life insurance contracts, financial advice, and investment experience should also be considered. Financial literacy is negatively related to risk aversion, i.e., the higher the financial literacy, the lower is the risk aversion. Age and gender are directly related to capital market participation and indirectly via financial literacy and risk attitude.

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Section: Literature Reviewmentioning

confidence: 97%

Section: Literature Reviewmentioning

confidence: 99%

Households’ Decision on Capital Market Participation: What Are the Drivers? A Multi-Factor Contribution to the Participation Puzzle

Oehler,

Horn

2023

FSR

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“…Financial planning [28,29], at its core, is not just about budgeting for the next month or year: it is about laying a foundation for the entire life-cycle [30,31]. Decisions made today will inevitably impact financial security, flexibility, and wealth accumulation in the distant future.…”

Section: The Significance Of Long-term Models In Financial Planningmentioning

confidence: 99%

Optimized Financial Planning: Integrating Individual and Cooperative Budgeting Models with LLM Recommendations

de Zarzà,

de Curtò,

Roig

et al. 2023

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In today’s complex economic environment, individuals and households alike grapple with the challenge of financial planning. This paper introduces novel methodologies for both individual and cooperative (household) financial budgeting. We firstly propose an optimization framework for individual budget allocation, aiming to maximize savings by efficiently distributing monthly income among various expense categories. We then extend this model to households, wherein the complexity of handling multiple incomes and shared expenses is addressed. The cooperative model prioritizes not only maximized savings but also the preferences and needs of each member, fostering a harmonious financial environment, whether they are short-term needs or long-term aspirations. A notable innovation in our approach is the integration of recommendations from a large language model (LLM). Given its vast training data and potent inferential capabilities, the LLM provides initial feasible solutions to our optimization problems, acting as a guiding beacon for individuals and households unfamiliar with the nuances of financial planning. Our preliminary results indicate that the LLM-recommended solutions result in budget plans that are both economically sound, meaning that they are consistent with established financial management principles and promote fiscal resilience and stability, and aligned with the financial goals and preferences of the concerned parties. This integration of AI-driven recommendations with econometric models, as an instantiation of an extended coevolutionary (EC) theory, paves the way for a new era in financial planning, making it more accessible and effective for a wider audience, as we propose an example of a new theory in economics where human behavior can be greatly influenced by AI agents.

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“…Gender inequality is a major problem in many societies, and it has many consequences (Shastri, 2014; Redding et al , 2017). The negative consequences of gender inequality have led to calls for gender equality reforms in the financial sector, especially in the area of financial inclusion and financial stability (Kumar and Quisumbing, 2015; Guiso and Zaccaria, 2023).…”

Section: Introductionmentioning

confidence: 99%

Effect of gender equality on financial stability and financial inclusion

Ozili¹

2023

SRJ

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Purpose This study aims to examine the effect of gender equality on financial stability and financial inclusion for 14 developing countries using yearly data from 2005 to 2021. Design/methodology/approach The two-stage least squares regression estimation and the generalized linear model regression estimation were used to investigate the effect of gender equality on financial stability and financial inclusion. Findings Gender equality has a significant positive effect on financial stability and financial inclusion in developing countries. Gender equality has a significant positive effect on financial stability and financial inclusion in African countries. Gender equality has a significant positive effect on financial stability but not on financial inclusion in non-African countries. Originality/value Little attention has been paid to the role of gender equality in promoting financial stability and financial inclusion. The authors address this issue in this study.

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From patriarchy to partnership: Gender equality and household finance

Cited by 30 publications

References 59 publications

Households’ Decision on Capital Market Participation: What Are the Drivers? A Multi-Factor Contribution to the Participation Puzzle

Households’ Decision on Capital Market Participation: What Are the Drivers? A Multi-Factor Contribution to the Participation Puzzle

Optimized Financial Planning: Integrating Individual and Cooperative Budgeting Models with LLM Recommendations

Effect of gender equality on financial stability and financial inclusion

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