Tabea Bucher?Koenen|Michael Ziegelmeyer
Who Lost the Most? Financial Literacy, Cognitive Abilities, and the Financial Crisis
Max Planck Institute for Social Law and Social Policy|Max Planck Society|Centre for European Economic Research|Max Planck Society|Max Planck Institute for Social Law and Social Policy|Central Bank of Luxembourg
study extent private households affected recent financial crisis financial decisions influenced shock analysis reveals individuals low levels financial literacy less likely invested stock market thus less likely report losses wealth yet individuals low financial literacy likely sell assets lost value realize losses reaction shortterm losses potential longterm consequences individuals participate markets recovery face lower returns long run