Financial Literacy and Economic Outcomes

28 Pages Posted: 3 Jan 2019

See all articles by David Puelz

David Puelz

University of Chicago - Booth School of Business - Econometrics and Statistics

Robert Puelz

Southern Methodist University (SMU) - Real Estate, Insurance, & Business Law Department

Date Written: December 18, 2018

Abstract

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

Suggested Citation

Puelz, David and Puelz, Robert, Financial Literacy and Economic Outcomes (December 18, 2018). Available at SSRN: https://ssrn.com/abstract=3302978 or http://dx.doi.org/10.2139/ssrn.3302978

David Puelz (Contact Author)

University of Chicago - Booth School of Business - Econometrics and Statistics ( email )

Chicago, IL 60637
United States

Robert Puelz

Southern Methodist University (SMU) - Real Estate, Insurance, & Business Law Department ( email )

United States
214-768-4156 (Phone)
214-768-3713 (Fax)

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