Keeping it simple: financial literacy and rules of thumb
Alejandro Drexler (),
Gregory Fischer and
Antoinette Schoar ()
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Individuals and business owners engage in an increasingly complex array of financial decisions that are critical for their success and well-being. Yet a growing literature documents that in both developed and developing countries, a large fraction of the population is unprepared to make these decisions. Evidence on potential remedies is limited and mixed. Two randomized trials test the impact of financial training on firm-level and individual outcomes for microentrepreneurs in the Dominican Republic. We find no significant effect from a standard, fundamentals-based accounting training. However, a simplified, rule-of-thumb training produced significant and economically meaningful improvements in business practices and outcomes.
Keywords: Adult education; business training; entrepreneurship; financial literacy (search for similar items in EconPapers)
JEL-codes: D14 D21 I21 J24 O12 (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
http://eprints.lse.ac.uk/33502/ Open access version. (application/pdf)
Journal Article: Keeping It Simple: Financial Literacy and Rules of Thumb (2014)
Working Paper: Keeping it simple: financial literacy and rules of thumb (2014)
Working Paper: Keeping it Simple: Financial Literacy and Rules of Thumb (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:33502
Access Statistics for this paper
More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Series data maintained by LSERO Manager ().