Banks Information Policies, Financial Literacy and Household Wealth A

Fort, Margherita ; Manaresi, Francesco ; Trucchi, Serena (2012) Banks Information Policies, Financial Literacy and Household Wealth A. Bologna: Dipartimento di Scienze economiche DSE, p. 43. DOI 10.6092/unibo/amsacta/3721. In: Quaderni - Working Paper DSE (852). ISSN 2282-6483.
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Abstract

We investigate the causal effect of financial literacy on financial assets, exploiting banks information policies for identification. In Italy, banks who belong to the PattiChiari consortium have implemented policies aimed at increasing transparency and procedural simplification. These policies may affect individuals' financial literacy without involving any direct cost for clients in terms of time, effort or resources, as we show in the paper. We exploit confidential information on whether individuals have their main bank account in one bank in the PattiChiari consortium to instrument their financial literacy level. We show that these policies have a positive and significant effect on both knowledge of financial instruments and household financial assets. Our results suggest that banks information policies have the potential to be an effective tool to increase individuals' financial literacy and that the relationship between financial literacy and wealth is largely underestimated by standard regression models.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Fort, Margherita
Manaresi, Francesco
Trucchi, Serena
Keywords
Financial Literacy, Wealth, Instrumental Variables
Subjects
ISSN
2282-6483
DOI
Deposit date
02 Jul 2013 13:09
Last modified
03 Oct 2013 08:41
URI

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