Luigi Guiso|Eliana Viviano
How Much Can Financial Literacy Help?
Einaudi Institute for Economics and Finance|Bank of Italy|Einaudi Institute for Economics and Finance|Bank of Italy
use dataset individual investors containing testbased measures financial literacy administrative records assets holding trades financial crisis september 2008 design three tests benefits financial literacy global financial crisis comparing decisions actually taken individuals dominated alternative ie one giving lower utility according simple normative models financial decisionmaking find highliteracy investors better timing market highliteracy investors also likely trade according prescriptions normative models detect intermediaries potential conflicts interest however though statistically significant effects economically small