Financial Literacy Externalities

55 Pages Posted: 18 Nov 2016 Last revised: 23 Apr 2019

See all articles by Michael Haliassos

Michael Haliassos

Goethe University Frankfurt - Faculty of Economics and Business Administration; Centre for Economic Policy Research (CEPR)

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: April 19, 2019

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 (April 19, 2019). Available at SSRN: https://ssrn.com/abstract=2870796 or http://dx.doi.org/10.2139/ssrn.2870796

Michael Haliassos (Contact Author)

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

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

Centre for Economic Policy Research (CEPR)

Paris
France

Thomas Jansson

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

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