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Mindsponge-based reasoning of households’ financial resilience during the Covid-19 crisis

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  • Vuong, Quan-Hoang
  • Khuc, Quy Van
  • La, Viet-Phuong
  • Le, Tam-Tri
  • Quang-Loc, Nguyen
  • Nguyen, Phuong-Tri
  • Nguyen, Minh-Hoang

Abstract

The Covid-19 crisis was remarkable because no global recession model could predict or provide early notice of when the coronavirus pandemic would happen and damage the global economy. Resilience to financial shocks is crucial for households as future crises like Covid-19 are inevitable. Therefore, the current study aims to the effects of financial literacy and accessibility to financial information on the financial resilience of Vietnamese households through the lens of an information-processing perspective. The Bayesian Mindsponge Framework (BMF) analytics was employed on a dataset of 839 samples for the investigation. We found that households of respondents with better financial knowledge and investment skills are less likely to be financially affected during the peak of the Covid-19 crisis, but the effect of investment skills is weakly reliable. Accessibility to financial information through informal sources (having a household member working in the financial sector) and formal sources (participating in a financial course) is positively associated with the respondents’ financial knowledge and investment skills. This finding suggests that the spillover effect of financial knowledge and skills among residents exists, leading to better resilience toward financial shocks. However, if the financial information is inaccurate, it might lead to misinformation, false beliefs, and poor economic decisions on a large scale.

Suggested Citation

  • Vuong, Quan-Hoang & Khuc, Quy Van & La, Viet-Phuong & Le, Tam-Tri & Quang-Loc, Nguyen & Nguyen, Phuong-Tri & Nguyen, Minh-Hoang, 2022. "Mindsponge-based reasoning of households’ financial resilience during the Covid-19 crisis," OSF Preprints 3uega, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:3uega
    DOI: 10.31219/osf.io/3uega
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    1. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
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    Cited by:

    1. Jin, Ruining & Hoang, Giang & Nguyen, Thi-Phuong & Nguyen, Phuong-Tri & Le, Tam-Tri & La, Viet-Phuong & Nguyen, Minh-Hoang & Vuong, Quan-Hoang, 2022. "An analytical framework-based pedagogical method for scholarly community coaching: A proof of concept," OSF Preprints qabhj, Center for Open Science.
    2. Nguyen, Minh-Hoang & Quang-Loc, Nguyen & Nguyen, Loan & Le, Tam-Tri & Phi, Xuan-Tuan & Vuong, Quan-Hoang, 2023. "How does the knowledge accumulation process affect Vietnamese entrepreneurs’ success likelihood?," OSF Preprints tgfr5, Center for Open Science.
    3. Mindsponge, AISDL, 2023. "Essential materials for Bayesian Mindsponge Framework analytics," OSF Preprints 7bxpd, Center for Open Science.
    4. Nguyen, Minh-Hoang, 2023. "Investigating urban residents' involvement in biodiversity conservation in protected areas: Empirical evidence from Vietnam," Thesis Commons z2hjv, Center for Open Science.
    5. Quan-Hoang Vuong & Quang-Loc Nguyen & Ruining Jin & Minh-Hieu Thi Nguyen & Thi-Phuong Nguyen & Viet-Phuong La & Minh-Hoang Nguyen, 2023. "Increasing Supply for Woody-Biomass-Based Energy through Wasted Resources: Insights from US Private Landowners," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    6. Chuang Bao & Yong Li & Xinmeng Zhao, 2023. "The Influence of Social Capital and Intergenerational Mobility on University Students’ Sustainable Development in China," Sustainability, MDPI, vol. 15(7), pages 1-20, April.

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