TY  - UNPD
A1  - Jappelli, Tullio
A1  - Padula, Mario
T1  - Investment in financial literacy and saving decisions
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2011,07
N2  - We present an intertemporal consumption model of consumer investment in financial literacy. Consumers benefit from such investment because their stock of financial literacy allows them to increase the returns on their wealth. Since literacy depreciates over time and has a cost in terms of current consumption, the model determines an optimal investment in literacy. The model shows that financial literacy and wealth are determined jointly, and are positively correlated over the life cycle. Empirically, the model leads to an instrumental variables approach, in which the initial stock of financial literacy (as measured by math performance in school) is used as an instrument for the current stock of literacy. Using microeconomic and aggregate data, we find a strong effect of financial literacy on wealth accumulation and national saving, and also show that ordinary least squares estimates underestate the impact of financial literacy on saving. JEL Classification: E2, D8, G1, J24 Keywords: Financial Literacy, Cognitive Abilities, Human Capital, Saving
T3  - CFS working paper series - 2011, 07 
KW  - Financial Literacy
KW  - Cognitive Abilities
KW  - Human Capital
KW  - Saving
KW  - Privater Verbrauch
KW  - Kreditmarkt
KW  - Wissen
KW  - Sparen
KW  - Modell
Y1  - 2011
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/21082
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-92954
IS  - Version January 25, 2011
ER  -