Financial Literacy Externalities

Michael Haliassos, Thomas Jansson and Yigitcan Karabulut

No 12100, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper uses unique administrative data and a quasi-field experiment of exogenous allocation 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 exposure and of a social multiplier of financial knowledge, but also of unfavorable distributional aspects of externalities. Exposure promotes saving in private retirement accounts and stockholding, especially when neighbors have economics or business education, but only for educated households and when interaction possibilities are substantial. Findings point to transfer of knowledge rather than mere imitation or effects through labor, education, or mobility channels.

Keywords: Household finance; Financial literacy; Social interactions; Refugees (search for similar items in EconPapers)
JEL-codes: D14 E21 F22 G11 I28 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-fle and nep-mac
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Financial Literacy Externalities (2020)
Working Paper: Financial Literacy Externalities (2017)
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