Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74532
Authors: 
Dick, Christian D.
Jaroszek, Lena M.
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers 13-027
Abstract: 
Based on a rich panel of household data, we investigate the determinants of the use of consumer credit in Germany. We find that the usage frequency of an easily accessible, but relatively expensive source of consumer credit decreases with financial literacy but is unrelated to household income. This result is robust to household structure, age, formal education, and occupational status. Based on childhood-related information on spending behavior, we control for the influence of self- control on credit decisions. We document that neither self-control, nor low numeracy drive out financial literacy when explaining the frequency of (expensive) credit usage. Hence, financial education plays an important role to improve consumer choices.
Subjects: 
Consumer finance
credit decisions
financial literacy
financial education
numeracy
self-control
JEL: 
D12
D14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
412.31 kB





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