In their new review, Olivia S. Mitchell, Professor of Insurance/Risk Management and Applied Economics/Policy, and Executive Director of the Wharton’s Pension Research Council at the Wharton School of the University of Pennsylvania, and Annamaria Lusardi assess the rapidly growing body of economic research on financial literacy. Theoretical research sees financial knowledge as a form of investment in human capital, and many empirical surveys establish that people need to know much more to become informed. The authors show how financial literacy shapes economic outcomes. They conclude with thoughts on research needs to better inform theoretical and empirical models as well as public policy.
To read “The Economic Importance of Financial Literacy: Theory and Evidence” by Annamaria Lusardi and Olivia S. Mitchell, please click here.