Keeping it Simple: Financial Literacy and Rules of Thumb
AbstractIndividuals and business owners engage in an increasingly complex array of financial decisions that are critical for their success and well-being. Yet a growing literature documents that in both developed and developing countries, a large fraction of the population is unprepared to make these decisions. Evidence on potential remedies is limited and mixed. Two randomized trials test the impact of financial training on firm-level and individual outcomes for microentrepreneurs in the Dominican Republic. We find no significant effect from a standard, fundamentals-based accounting training. However, a simplified, rule-of-thumb training produced significant and economically meaningful improvements in business practices and outcomes.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7994.
Date of creation: Sep 2010
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- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
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- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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- Yukichi Mano & Alhassan Iddrisu & Yutaka Yoshino & Tetsushi Sonobe, 2011.
"How Can Micro and Small Enterprises in Sub-Saharan Africa Become More Productive? The Impacts of Experimental Basic Managerial Training,"
GRIPS Discussion Papers
11-06, National Graduate Institute for Policy Studies.
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- Mano, Yukichi & Iddrisu,, Alhassan & Yoshino, Yutaka & Sonobe, Tetsushi, 2011. "How can micro and small enterprises in Sub-Saharan Africa become more productive? the impacts of experimental basic managerial training," Policy Research Working Paper Series 5755, The World Bank.
- Lührmann, Melanie & Serra-Garcia, Marta & Winter, Joachim, 2012. "The effects of financial literacy training: Evidence from a field experiment with German high-school children," Discussion Papers in Economics 14101, University of Munich, Department of Economics.
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