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The Impact of Financial Education on Adolescents' Intertemporal Choices

Listed author(s):
  • Melanie Lührmann
  • Marta Serra-Garcia
  • Joachim Winter

We study the impact of financial education on intertemporal choice in adolescence. The program was randomly assigned among high-school students and intertemporal choices were measured using an incentivized experiment. Students who participated in the program display a decrease in time inconsistency; an increase in the allocation of payment to a single payment date, compared to spreading payment across two dates; and increased consistency of choice with the law of demand. These findings suggest that the effect of such educational programs is to increase comprehension and decrease bracketing in intertemporal choice.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2014/wp-cesifo-2014-07/cesifo1_wp4925.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4925.

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Date of creation: 2014
Handle: RePEc:ces:ceswps:_4925
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