Discussion Paper No. 131
November 8, 2021
Active Learning Improves Financial Education
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Abstract:
We conduct a randomized field experiment to study the effects of two financial education interventions offered to small-scale retailers in Uganda. The treatments contrast "active learning" with "traditional lecturing" within standardized lesson-plans. We find that active learning has a positive and economically meaningful impact on savings and investment outcomes, in contrast to insignificant impacts of lecturing. These results are not conditional on prior education or financial literacy. Tentative evidence suggests that only active learning stimulates several cognitive and non-cognitive mechanisms; moreover, a social mechanism may be at play as treated individuals join social groups discussing financial matters.
Keywords:
financial behavior; financial literacy; active learning; lecturing; training method; field experiment;
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Discussion Paper No. 130
Giving Once, Giving Twice: A Two-Period Field Experiment on Intertemporal Crowding in Charitable Giving
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Abstract:
We study intertemporal crowding between two fundraising campaigns for the same charitable organization by manipulating donors' beliefs about the likelihood of future campaigns in two subsequent field experiments. The data shows that initial giving is decreasing in the likelihood of a future campaign while subsequent giving increases in initial giving. While this refutes the predictions of a simple expected utility model, the pattern is in line with a model that allows for (anticipated or unanticipated) habit formation provided that donations in the two periods are substitutes.
Keywords:
charitable giving; field experiments; intertemporal crowding;
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Discussion Paper No.
November 4, 2021
Does Financial Literacy Improve Financial Inclusion? Cross Country Evidence
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Abstract:
While financial inclusion is typically addressed by improving the financial infrastructure, we show that a higher degree of financial literacy also has a clear beneficial effect. We study this effect at the cross-country level, which allows us to consider institutional variation. Regarding "access to finance", financial infrastructure and financial literacy are mainly substitutes. However, regarding the "use of financial services", the effect of higher financial literacy strengthens the effect of more financial depth. The causal interpretation of these results is supported by IV-regressions. Moreover, the positive impact of financial literacy holds across income levels and several subgroups within countries.
Keywords:
financial inclusion; financial literacy; financial institutions; financial development;
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Discussion Paper No. 37
November 3, 2021
Does Financial Education Impact Financial Literacy and Financial Behavior, and if so, When?
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Abstract:
In a meta-analysis of 126 impact evaluation studies, we find that financial education significantly impacts financial behavior and, to an even larger extent, financial literacy. These results also hold for the subsample of randomized experiments (RCTs). However, intervention impacts are highly heterogeneous: Financial education is less effective for low- income clients as well as in low and lower-middle income economies. Specific behaviors, such as the handling of debt, are more difficult to influence and mandatory financial education tentatively appears to be less effective. Thus, intervention success depends crucially on increasing education intensity and offering financial education at a “teachable moment".
Keywords:
financial education; financial literacy; financial behavior; meta-analysis; meta-regression; impact evaluation;
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