Alejandro Drexler|Gregory Fischer|Antoinette Schoar
Keeping It Simple: Financial Literacy and Rules of Thumb
The University of Texas at Austin|London School of Economics and Political Science|The Honourable Society of Lincoln's Inn|Massachusetts Institute of Technology|Moscow Institute of Thermal Technology
microentrepreneurs often lack financial literacy required make important financial decisions conducted randomized evaluation bank dominican republic compare impact two distinct programs standard accounting training versus simplified ruleofthumb training taught basic financial heuristics ruleofthumb training significantly improved firms financial practices objective reporting quality revenues microentrepreneurs lower skills poor initial financial practices impact ruleofthumb training significantly larger standard accounting training suggesting simplifying training programs might improve effectiveness less sophisticated individuals jel d4 g21 j24 l25 l26 m41 o16