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Endogenous financial literacy, saving and stock market participation

  • Spataro, Luca
  • Corsini, Lorenzo

There is a consolidated empirical literature providing evidence of the fact that financial literacy, human capital, savings and stock market participation are interconnected decisions. However, to the best of our knowledge, a theoretical explanation of such connections is missing. In this paper we aim at filling this gap, by building a framework that includes all these decisions in an encompassing model. The results of our model provide a theoretical foundation for the role and the determinants of financial literacy and are able to explain several stylized facts on literacy and stock market participation.

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File URL: http://mpra.ub.uni-muenchen.de/44342/1/MPRA_paper_44342.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44342.

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Date of creation: Feb 2013
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Handle: RePEc:pra:mprapa:44342
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