Do more financially literate households invest less in housing? Evidence from Italy

Riccardo Calcagno and Maria Cesira Urzì Brancati

No 297, Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: Using the Bank of Italy’s Survey of Household Income and Wealth (SHIW) covering a 5-year panel, we measure the impact of the degree of households’ financial literacy on their portfolio imbalance towards housing investment. We find that households with higher levels of financial literacy hold a relatively lower share of illiquid wealth, and the results are more pronounced at older ages, when according to the lifecycle hypothesis they are meant to decumulate their assets. Results appear robust to different specifications of the dependent variable and potential endogeneity of financial literacy.

Keywords: financial literacy; intertemporal consumer choice; housing; portfolio choice (search for similar items in EconPapers)
JEL-codes: D12 D91 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2013
New Economics Papers: this item is included in nep-eur and nep-ure
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Journal Article: Do more financially literate households invest less in housing? Evidence from Italy (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cca:wpaper:297

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