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Financial knowledge, attitude and behavior: evidence from the Austrian Survey of Financial Literacy

Author

Listed:
  • Pirmin Fessler

    (Oesterreichische Nationalbank)

  • Maria Silgoner

    (Oesterreichische Nationalbank)

  • Rosa Weber

    (Stockholm University)

Abstract

This paper provides an in-depth analysis of the links between financial knowledge, attitude and behavior, based on the Austrian contribution to the OECD/INFE survey on financial literacy. Our analysis gives evidence of causal effects of financial knowledge on financial behavior, using a new instrument based on respondents’ newspaper reading habits. We confirm that the selection bias is likely negative, i.e. we would underestimate the causal effect of knowledge on behavior in a classical regression setting. Furthermore, we provide mediation analyses, showing that about 13% of the causal effect of knowledge on behavior is mediated through financial attitude.

Suggested Citation

  • Pirmin Fessler & Maria Silgoner & Rosa Weber, 2020. "Financial knowledge, attitude and behavior: evidence from the Austrian Survey of Financial Literacy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 929-947, November.
    • Handle: RePEc:kap:empiri:v:47:y:2020:i:4:d:10.1007_s10663-019-09465-2
    DOI: 10.1007/s10663-019-09465-2
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    1. Luc Arrondel & Laura Bartiloro & Pirmin Fessler & Peter Lindner & Thomas Y. Mathä & Cristiana Rampazzi & Frédérique Savignac & Tobias Schmidt & Martin Schürz & Philip Vermeulen, 2016. "How Do Households Allocate Their Assets? Stylized Facts from the Eurosystem Household Finance and Consumption Survey," International Journal of Central Banking, International Journal of Central Banking, vol. 12(2), pages 129-220, June.
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    Cited by:

    1. Jia Hou & Sebastian Schuler, 2022. "The nonlinear effect of financial literacy on wealth: evidence from Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 627-661, August.
    2. Man Yao & Tori I. Rehr & Erica P. Regan, 2023. "Gender Differences in Financial Knowledge among College Students: Evidence from a Recent Multi-institutional Survey," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 693-713, September.
    3. Kam C. Chan & Samuel Chang & Jean C. Snavely, 2022. "Effects of financial literacy on graduate school attitudes amidst COVID‐19," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2003-2015, September.

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    More about this item

    Keywords

    Financial literacy; Knowledge; Financial behavior; Survey data; Instrumental variables;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I2 - Health, Education, and Welfare - - Education
    • I29 - Health, Education, and Welfare - - Education - - - Other

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