Financial Literacy Externalities

Sveriges Riksbank Working Paper Series No. 333

Riksbank Research Paper Series No. 157

58 Pages Posted: 8 Mar 2017 Last revised: 29 Nov 2018

See all articles by Michael Haliassos

Michael Haliassos

Goethe University Frankfurt - Faculty of Economics and Business Administration; CEPR; NETSPAR; Goethe University Frankfurt - Institute for Monetary and Financial Stability (IMFS)

Thomas Jansson

Sveriges Riksbank - Research Division

Yigitcan Karabulut

Frankfurt School of Finance & Management; CEPR

Multiple version iconThere are 4 versions of this paper

Date Written: November 9, 2018

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

JEL Classification: G11, E21, D14, F22, I28

Suggested Citation

Haliassos, Michael and Jansson, Thomas and Karabulut, Yigitcan, Financial Literacy Externalities (November 9, 2018). Sveriges Riksbank Working Paper Series No. 333, Riksbank Research Paper Series No. 157, Available at SSRN: https://ssrn.com/abstract=2915028 or http://dx.doi.org/10.2139/ssrn.2915028

Michael Haliassos

Goethe University Frankfurt - Faculty of Economics and Business Administration ( email )

Theodor-W.-Adorno-Platz 3
PF H32
Frankfurt am Main, D-60323
Germany

CEPR

London
United Kingdom

NETSPAR ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Goethe University Frankfurt - Institute for Monetary and Financial Stability (IMFS) ( email )

Theodor-W.-Adorno-Platz 1
Frankfurt, 60323
Germany

Thomas Jansson (Contact Author)

Sveriges Riksbank - Research Division ( email )

S-103 37 Stockholm
Sweden

Yigitcan Karabulut

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

CEPR ( email )

London
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
152
Abstract Views
1,278
Rank
92,655
PlumX Metrics