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Financial Literacy and Risk Protection During the Covid-19 Pandemic

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Listed:
  • Giuseppe Bertola

    (University of Turin)

  • Anna Lo Prete

    (University of Turin)

Abstract

This study documents that competent access to financial markets can smooth consumption in the face of idiosyncratic income shocks. Using household-level data on financial literacy and financial resilience in Italy during the first phase of the Covid-19 pandemic, we find that financial literacy and financial asset ownership both influenced consumption changes in theoretically sensible ways. The results are robust in specifications controlling for several socio-demographic characteristics, saving choices, public transfers, and to different estimation methods.

Suggested Citation

  • Giuseppe Bertola & Anna Lo Prete, 2025. "Financial Literacy and Risk Protection During the Covid-19 Pandemic," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 645-666, July.
    • Handle: RePEc:spr:italej:v:11:y:2025:i:2:d:10.1007_s40797-024-00286-2
    DOI: 10.1007/s40797-024-00286-2
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    1. Rob J. Alessie & Maarten van Rooij & Annamaria Lusardi, 2011. "Financial Literacy, Retirement Preparation and Pension Expectations in the Netherlands," NBER Working Papers 17109, National Bureau of Economic Research, Inc.
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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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