Fort, M;
Manaresi, F;
Trucchi, S;
(2016)
Adult financial literacy and households' financial assets: the role of bank information policies.
Economic Policy
, 31
(88)
pp. 743-782.
10.1093/epolic/eiw012.
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Abstract
We investigate the role of bank information policies in fostering the accumulation of financial knowledge. Exploiting the exogenous variability induced by the presence of a consortium of banks in Italy (PattiChiari), we find that these policies are effective for a small subsample of the population (5–10%) and lead to an increase in financial literacy by about 10%, on average. Compliance is highest among low-educated respondents older than 60 years. We use these policies as an instrumental variable to estimate the effect of financial literacy on financial assets. We find that one standard deviation increase in financial literacy determines an increase in household financial assets by 35% of a standard deviation (8,000 euros). Effects are heterogeneous in the population and highest among elderly low-educated households.
| Type: | Article |
|---|---|
| Title: | Adult financial literacy and households' financial assets: the role of bank information policies |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1093/epolic/eiw012 |
| Publisher version: | http://dx.doi.org/10.1093/epolic/eiw012 |
| Language: | English |
| Additional information: | Copyright © CEPR, CESifo, Sciences Po, 2016.This is a pre-copyedited, author-produced version of an article accepted for publication in Economic Policy following peer review. The version of record [Fort, M; Manaresi, F; Trucchi, S; (2016) Adult financial literacy and households' financial assets: the role of bank information policies. Economic Policy, 31 (88) pp. 743-782. 10.1093/epolic/eiw012] is available online at: http://dx.doi.org/10.1093/epolic/eiw012 |
| Keywords: | Social Sciences, Economics, Business & Economics, D14, G11, bank information policies, financial assets, financial literacy, instrumental variables, Education, Identification, Decisions, Demand, Wealth |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1530877 |
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