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Revisiting financial fragility during the COVID-19 pandemic: Evidence from Taiwan

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  • Chen, Hung-Ling
  • Hsu, Yuan-Lin
  • Lu, Chi-Yang

Abstract

This study examines the impact of self-control and financial literacy on financial fragility during the COVID-19 pandemic in Taiwan. The findings indicate that both cognitive (financial literacy) and non-cognitive/affective (self-control) factors are significantly associated with individuals' financial fragility. Notably, self-control exerts a stronger impact on financial fragility than financial literacy. Individuals with low self-control exhibit significantly lower financial literacy compared to their high self-control counterparts. Additionally, respondents with both high self-control and high financial literacy experience the lowest likelihood of financial fragility. These results are robust after assessing for omitted variables and endogeneity.

Suggested Citation

  • Chen, Hung-Ling & Hsu, Yuan-Lin & Lu, Chi-Yang, 2024. "Revisiting financial fragility during the COVID-19 pandemic: Evidence from Taiwan," Journal of Behavioral and Experimental Finance, Elsevier, vol. 44(C).
    • Handle: RePEc:eee:beexfi:v:44:y:2024:i:c:s2214635024001084
    DOI: 10.1016/j.jbef.2024.100993
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