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Financial Literacy Externalities

Author

Listed:
  • Haliassos, Michael
  • Jansson, Thomas
  • Karabulut, Yigitcan

Abstract

This paper uses unique administrative data and a quasi-field experiment of exogenous allocation to apartments in Sweden to estimate medium- and longer-run effects on financial behavior from exposure to financially literate neighbors. It contributes evidence of causal impact of financial literacy and points to a social multiplier of effective programs to enhance it. Exposure promotes saving in private retirement accounts and stockholding, especially when neighbors have economics or business education, but only for educated or male-headed households. Findings point to relevant knowledge transfer through social interactions rather than to labor market or other channels linked to local economic conditions.

Suggested Citation

  • Haliassos, Michael & Jansson, Thomas & Karabulut, Yigitcan, 2017. "Financial Literacy Externalities," CEPR Discussion Papers 12100, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12100
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    References listed on IDEAS

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    More about this item

    Keywords

    financial literacy; household finance; Refugees; Social interactions;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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