Abstract

http://ssrn.com/abstract=1707884
 
 

References (21)



 
 

Citations (7)



 


 



Keeping it Simple: Financial Literacy and Rules of Thumb


Alejandro Drexler


University of Texas at Austin - McCombs School of Business

Greg Fischer


London School of Economics & Political Science (LSE) - Department of Economics

Antoinette Schoar


Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

September 2010

CEPR Discussion Paper No. DP7994

Abstract:     
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.

Number of Pages in PDF File: 39

Keywords: adult education, business training, entrepreneurship, financial literacy

JEL Classification: C93, D14, D21, I21, J24, O12

working papers series


Date posted: November 14, 2010  

Suggested Citation

Drexler, Alejandro and Fischer, Greg and Schoar, Antoinette, Keeping it Simple: Financial Literacy and Rules of Thumb (September 2010). CEPR Discussion Paper No. DP7994. Available at SSRN: http://ssrn.com/abstract=1707884

Contact Information

Alejandro Drexler (Contact Author)
University of Texas at Austin - McCombs School of Business ( email )
Austin, TX 78712
United States
Greg Fischer
London School of Economics & Political Science (LSE) - Department of Economics ( email )
Houghton Street
London WC2A 2AE
United Kingdom
Antoinette Schoar
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
50 Memorial Drive, E52-447
Cambridge, MA 02142
United States
617-253-3763 (Phone)
617-258-6855 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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References:  21
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