Adaptation and Validation of U.S. Test of Economic Literacy (TEL4) in Croatia

The aim of this research was to adapt and validate US-based Test of Economic Literacy – 4th edition (TEL4) to Croatian cultural setting. Through adherence to guidelines prescribed by International Testing Committee and American Educational Research Association, original TEL4 test has been translated and validated through using direct one-way translation with multi-disciplinary committee assessment of both the original and translated version via focused group interviews and questionnaires. In the additional pilot study on 205 respondents, Rasch analysis was used to obtain further validity of the measure and item discrimination was calculated through Point-biserial correlations. The results of the data collected from multi-disciplinary committee assessment and the pilot study, indicate that the TEL4 in its’ adapted form is a valid instrument to assess economic literacy in Croatia. Currently ongoing large-scale research into economic literacy by means of this adapted TEL4 test, on the representative sample in Croatia, will further validate the instrument. Practical implications of such validated instrument can support evidence-based policymaking related to economics education and curriculum development in Croatia. Limitations lie in cross-sectional design, which does not allow examination of changes over time. The pilot in which non-random convenience sampling is used, limits the generalization of this study. The article contributes to the body of literature on economic literacy as one of the important facets of modern economy and as such is the first study in systematic adaptation and validation of TEL4 test in Croatian setting by adherence to international translatory and adaptation standards and by Rasch analysis. Thus, this article scientifically contributes to the international field of methodological research on adaptation of economic literacy assessment instruments outside the US and Western Europe.