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Adults' Financial Literacy and Households' Financial Assets: The Role of Banks Information Policies

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  • Margherita Fort
  • Francesco Manaresi
  • Serena Trucchi

Abstract

We investigate the role of banks information policies in fostering the accumulation of financial knowledge. In Italy, banks belonging to the PattiChiari Consortium implement policies aimed at increasing transparency and procedural simplification, without offering services at lower cost with respect to other banks. We exploit this feature of the Italian banking system and show that these policies promote financial literacy. The increase in financial knowledge attributable to banks information policies significantly affects household financial assets. We use these policies as instruments to estimate the effect of financial literacy on financial assets, showing that it is significantly underestimated by OLS correlation.

Suggested Citation

  • Margherita Fort & Francesco Manaresi & Serena Trucchi, 2014. "Adults' Financial Literacy and Households' Financial Assets: The Role of Banks Information Policies," CESifo Working Paper Series 5047, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_5047
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    1. repec:oup:wbecrv:v:31:y:2017:i:3:p:611-630. is not listed on IDEAS
    2. repec:taf:jpolrf:v:20:y:2017:i:3:p:254-270 is not listed on IDEAS
    3. repec:bla:ecnote:v:47:y:2018:i:2-3:p:245-304 is not listed on IDEAS
    4. Marco Nieddu & Lorenzo Pandolfi, 2018. "Cutting Through the Fog: Financial Literacy and the Subjective Value of Financial Assets," CSEF Working Papers 497, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    5. Kaiser, Tim & Menkhoff, Lukas, 2018. "Active Learning Improves Financial Education:," Rationality and Competition Discussion Paper Series 131, CRC TRR 190 Rationality and Competition.
    6. Tim Kaiser & Lukas Menkhoff, 2018. "Active Learning Fosters Financial Behavior: Experimental Evidence," Discussion Papers of DIW Berlin 1743, DIW Berlin, German Institute for Economic Research.
    7. Tim Kaiser & Lukas Menkhoff, 2017. "Does Financial Education Impact Financial Literacy and Financial Behavior, and If So, When?," World Bank Economic Review, World Bank Group, vol. 31(3), pages 611-630.
    8. repec:onb:oenbmp:y:2018:i:q1/18:b:2 is not listed on IDEAS

    More about this item

    Keywords

    banks information policies; financial assets; financial literacy; instrumental variables;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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