Do More Financially Literate Households Invest Less in Housing? Evidence from Italy

Calcagno, R. and M. Urzi-Brancati, 2014, "Do more financially literate households invest less in housing? Evidence from Italy". Economics Bulletin 34 (1), pp. 430-445.

16 Pages Posted: 17 Apr 2014

See all articles by Riccardo Calcagno

Riccardo Calcagno

Politecnico di Torino

Cesira Urzi

Università degli studi di Modena e Reggio Emilia (UNIMORE)

Date Written: March 4, 2014

Abstract

Using the Bank of Italy’s Survey of Households Income and Wealth (SHIW) covering a 5-years panel, we measure the impact of the degree of households’ financial literacy on the quota of housing investment in their portfolio. We find that households with higher levels of financial literacy hold a relatively lower share of illiquid wealth, and the results are more pronounced at older ages, when according to the lifecycle hypothesis they are meant to decumulate their wealth.

Keywords: financial literacy, intertemporal choice, housing

JEL Classification: D12, D91

Suggested Citation

Calcagno, Riccardo and Urzi, Cesira, Do More Financially Literate Households Invest Less in Housing? Evidence from Italy (March 4, 2014). Calcagno, R. and M. Urzi-Brancati, 2014, "Do more financially literate households invest less in housing? Evidence from Italy". Economics Bulletin 34 (1), pp. 430-445., Available at SSRN: https://ssrn.com/abstract=2408618

Riccardo Calcagno (Contact Author)

Politecnico di Torino ( email )

Corso Duca degli Abruzzi, 24
Torino, Torino 10129
Italy

Cesira Urzi

Università degli studi di Modena e Reggio Emilia (UNIMORE) ( email )

Viale A. Allegri 9
42121

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