Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159691
Authors: 
Fort, Margherita
Manaresi, Francesco
Trucchi, Serena
Year of Publication: 
2012
Series/Report no.: 
Quaderni - Working Paper DSE 852
Abstract: 
We investigate the causal effect of financial literacy on financial assets, exploiting banks information policies for identification. In Italy, banks who belong to the PattiChiari consortium have implemented policies aimed at increasing transparency and procedural simplification. These policies may affect individuals' financial literacy without involving any direct cost for clients in terms of time, effort or resources, as we show in the paper. We exploit confidential information on whether individuals have their main bank account in one bank in the PattiChiari consortium to instrument their financial literacy level. We show that these policies have a positive and significant effect on both knowledge of financial instruments and household financial assets. Our results suggest that banks information policies have the potential to be an effective tool to increase individuals' financial literacy and that the relationship between financial literacy and wealth is largely underestimated by standard regression models.
JEL: 
D14
G11
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
735.19 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.