Do more financially literate households invest less in housing? Evidence from Italy
AbstractUsing the Bank of Italy’s Survey of Household Income and Wealth (SHIW) covering a 5-year panel, we measure the impact of the degree of households’ financial literacy on their portfolio imbalance towards housing investment. We find that households with higher levels of financial literacy hold a relatively lower share of illiquid wealth, and the results are more pronounced at older ages, when according to the lifecycle hypothesis they are meant to decumulate their assets. Results appear robust to different specifications of the dependent variable and potential endogeneity of financial literacy.
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Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 297.
Length: 26 pages
Date of creation: 2013
Date of revision:
financial literacy; intertemporal consumer choice; housing; portfolio choice;
Other versions of this item:
- Riccardo Calcagno & Maria Cesira Urzi Brancati, 2014. "Do more financially literate households invest less in housing? Evidence from Italy," Economics Bulletin, AccessEcon, vol. 34(1), pages 430-445.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-20 (All new papers)
- NEP-EUR-2013-04-20 (Microeconomic European Issues)
- NEP-URE-2013-04-20 (Urban & Real Estate Economics)
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