Joanne Yoong
Financial Illiteracy and Stock Market Participation: Evidence from the RAND American Life Panel
financially unsophisticated consumers consistently make suboptimal financial decisions may suffer lasting consequences longterm wealth accumulation welfare paper focuses attention welldocumented area potentially suboptimal financial decision making lack stock market participation using broadbased assessment financial literacy administered sample older american respondents rand american life panel alp use novel strategy establishing causation stockmarket related financial literacy stock market participation using knowledge financial topics instrumental variables find ignorance stock market investment knowledge significantly reduces propensity hold stocks particular decrease onestandard deviation relevant measure suggests decrease order 10 participation