Financial Literacy and Economic Outcomes
28 Pages Posted: 3 Jan 2019
Date Written: December 18, 2018
We explore the relationship between financial literacy and self-reported economic outcomes using survey data from the United States. Our dataset includes a large number of covariates from the National Financial Capability Study, and we use a new econometric technique developed by Hahn et al. (2018a) to test whether changes in financial literacy are positively related to changes in economic outcomes while controlling for appropriate confounders. The estimate of the treatment parameter on financial literacy is positive, and the regularized regression treatment effect estimates provide more confidence about this finding than OLS.
Keywords: Financial Literacy, Economic Outcomes, Treatment Effect Estimation
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