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Crowding out effects of financial knowledge and attitude on risk preferences: Evidence from a least developed African country

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  • Ruth Cadaoas Tacneng
  • Klarizze Anne Martin Puzon
  • Thierno Barry

Abstract

Using hand-collected survey and experimental data, we examine the determinants of financial literacy as well as the link between self-reported risk and elicited risk preferences in a least developed African country, Guinea. We measure financial literacy as the sum of three elements: financial knowledge, attitude, and behaviour. Our findings indicate that the lack of a significant relationship between our financial literacy measure and risk preferences is caused by the crowding out effects of financial attitude and knowledge.

Suggested Citation

  • Ruth Cadaoas Tacneng & Klarizze Anne Martin Puzon & Thierno Barry, 2021. "Crowding out effects of financial knowledge and attitude on risk preferences: Evidence from a least developed African country," WIDER Working Paper Series wp-2021-58, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-58
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    References listed on IDEAS

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    Keywords

    Literacy; Risk attitudes; Africa; Investment decisions;
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