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Financial knowledge, attitude and behavior: evidence from the Austrian Survey of Financial Literacy

Author

Listed:
  • Pirmin Fessler

    (Oesterreichische Nationalbank)

  • Maria Silgoner

    (Oesterreichische Nationalbank)

  • Rosa Weber

    (Stockholm University)

Abstract

This paper provides an in-depth analysis of the links between financial knowledge, attitude and behavior, based on the Austrian contribution to the OECD/INFE survey on financial literacy. Our analysis gives evidence of causal effects of financial knowledge on financial behavior, using a new instrument based on respondents’ newspaper reading habits. We confirm that the selection bias is likely negative, i.e. we would underestimate the causal effect of knowledge on behavior in a classical regression setting. Furthermore, we provide mediation analyses, showing that about 13% of the causal effect of knowledge on behavior is mediated through financial attitude.

Suggested Citation

  • Pirmin Fessler & Maria Silgoner & Rosa Weber, 2020. "Financial knowledge, attitude and behavior: evidence from the Austrian Survey of Financial Literacy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 929-947, November.
    • Handle: RePEc:kap:empiri:v:47:y:2020:i:4:d:10.1007_s10663-019-09465-2
    DOI: 10.1007/s10663-019-09465-2
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    Cited by:

    1. Jia Hou & Sebastian Schuler, 2022. "The nonlinear effect of financial literacy on wealth: evidence from Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 627-661, August.
    2. Kam C. Chan & Samuel Chang & Jean C. Snavely, 2022. "Effects of financial literacy on graduate school attitudes amidst COVID‐19," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2003-2015, September.
    3. Man Yao & Tori I. Rehr & Erica P. Regan, 2023. "Gender Differences in Financial Knowledge among College Students: Evidence from a Recent Multi-institutional Survey," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 693-713, September.

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    More about this item

    Keywords

    Financial literacy; Knowledge; Financial behavior; Survey data; Instrumental variables;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I2 - Health, Education, and Welfare - - Education
    • I29 - Health, Education, and Welfare - - Education - - - Other

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