|
on Financial Literacy and Education |
|
Issue of 2024–12–30
four papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Tatyana Shelovanova (Bank of Russia, Russian Federation); Andrey Sinyakov (Bank of Russia, Russian Federation) |
| Abstract: | Data of the All-Russian Survey of Consumer Finances for 2020 and 2022 are used to analyse the relationship between financial literacy and responsible financial behaviour indices. Responsible financial behaviour involves consumption smoothing, asset diversification, nonspeculative investments and a low/moderate debt burden, acquisition of information for decisionmaking, the appropriate perception of macroeconomic trends, the absence of naive decisions and confidence about the future. The role of financial literacy is controlled by including educational indicators, financial experience, personal preferences (risk tolerance, planning horizon / future discounting, overconfidence, optimism) and a large number of standard control variables. The results show a positive relationship between financial literacy and overall responsible financial behaviour. Our analysis of the aggregate indicator’s components lead us to conclude that improved financial literacy at the individual level can help smooth out consumption (through diversification of savings) and, at the macroeconomic level, help development the economy and financial market instruments. In general, financial literacy fails to guarantee confidence in state pension initiatives and does not ensure a less risky investment profile or a lower debt burden. |
| Keywords: | financial literacy, financial behaviour, saving behaviour of households, financial behaviour index, survey of consumer finances, Russia |
| JEL: | C83 D14 G41 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bkr:wpaper:wps132 |
| By: | Suyash Rai (xKDR Forum) |
| Abstract: | The digital public infrastructure (DPI) approach has gained prominence in digital transformation, with India's Aadhaar often cited as a success story for accelerating financial inclusion. This paper critically evaluates India's progress on financial inclusion from 2011 to 2021, revealing a paradox: while account ownership surged, account usage remained low. The paper highlights that government and Reserve Bank of India (RBI) mandates drove rapid account opening, with Aadhaar enabling account opening mainly as a physical ID and an authentication tool for transactions. The financial inclusion efforts focused on expanding account ownership for direct benefit transfers, often at the expense of service quality. Banks, pressured to meet political targets, faced weak commercial incentives due to restrictive pricing regulations and mismatched service delivery models. These constraints hampered sustainable account usage. The paper explores whether alternative policy designs could have balanced electoral and economic goals more effectively. Demand-side constraints, shaped by socioeconomic conditions, and supply-side path dependencies influenced government choices. However, the analysis suggests room for greater political creativity in defining the policy objectives, liberalizing regulations liberalization to enhance financial inclusion, and leveraging the public sector banks. Finally, the paper discusses implications of this analysis for institutional reforms, including redesigning welfare schemes, revisiting public sector bank ownership, and rethinking top-down financial mandates. It also situates India's experience within the broader debate on the state's role in DPIs, challenging the notion that state-led DPI initiatives inherently maximize public value. |
| JEL: | G28 H53 L86 O33 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:anf:wpaper:35 |
| By: | Breitschopf, Barbara; Billerbeck, Anna |
| Abstract: | This paper investigates potential drivers of technology and financial investments in energy transition technologies (ETT). The empirical findings rely on three online surveys, one conducted in March and the other two in May 2024 in Germany. The paper presents the descriptive results of the surveys. Respondents reveal a significant engagement in energy-efficient appliances and building measures, followed by roof-mounted PV systems and heat pumps. Notably, financial investments in renewable energy projects remain low. The general approval for the energy transition is high but declines when associated with burdens. Co-ownership of local energy suppliers or municipalities in energy projects enhance investment willingness of citizens, emphasizing the importance of trust in local policymakers. Key non-monetary factors influencing investment decisions include nonmonetary costs such as stress and physical efforts, as well as non-monetary benefits such as ease of use, energy independence, or environmental benefits. The paper highlights that while monetary costs are crucial, non-monetary aspects, such as efforts, individual benefits, followed by social benefits, significantly motivate investments in ETT, underscoring the complexity of factors influencing financial participation in energy transition. |
| Keywords: | financial participation, energy transition, preferences, design elements, nonmonetary effects |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fisisi:306343 |
| By: | Florian Horky (National Bank of Slovakia) |
| Abstract: | Our aim in this study is to investigate how SMEs perceive and expect the availability of bank loans, credit lines, and trade credits. Our findings highlight that past experiences and changing demands for financing are significant drivers in shaping both past perceptions and future expectations. Behavioral factors such as loss aversion and rational inattention play a crucial role in influencing managerial decisions. We use data from the semi-annually conducted Survey on the Access to Finance of Enterprises. The data covers the time-period from April 2014 to September 2022. Insights from our findings help explain the persistent low credit dynamics observed since the financial crisis and suggest similar trends may follow the current economic disruptions. Our results underscore the importance of considering behavioral elements and past experiences in designing effective monetary policies to support SMEs’ access to finance. |
| JEL: | D22 E51 F33 G21 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:svk:wpaper:1115 |