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Political participation and financial education: understanding personal and collective tradeoffs for a better citizenship

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Abstract

The paper documents a positive association between political participation, measured by the number of citizens voting at national elections, and awareness of the tradeoffs behind both private and public decisions that indicators of basic financial education can capture. The association is robust to the inclusion of a range of controls, stronger for the most difficult concepts of risk diversification and interest compounding, and consistent with the hypothesis that in countries where financial education is higher due to national cultural traits, voter turnout at national elections is higher.

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  • Lo Prete, Anna, 2024. "Political participation and financial education: understanding personal and collective tradeoffs for a better citizenship," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202418, University of Turin.
    • Handle: RePEc:uto:dipeco:202418
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    References listed on IDEAS

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    1. Fumagalli, Eileen & Narciso, Gaia, 2012. "Political institutions, voter turnout, and policy outcomes," European Journal of Political Economy, Elsevier, vol. 28(2), pages 162-173.
    2. Fornero, Elsa & Lo Prete, Anna, 2019. "Voting in the aftermath of a pension reform: the role of financial literacy," Journal of Pension Economics and Finance, Cambridge University Press, vol. 18(1), pages 1-30, January.
    3. Persson, Mikael, 2015. "Education and Political Participation," British Journal of Political Science, Cambridge University Press, vol. 45(3), pages 689-703, July.
    4. Dee, Thomas S., 2004. "Are there civic returns to education?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1697-1720, August.
    5. Anna Lo Prete, 2018. "Inequality and the finance you know: does economic literacy matter?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(1), pages 183-205, April.
    6. Kenneth De Beckker & Kristof De Witte & Geert Van Campenhout, 2020. "The role of national culture in financial literacy: Cross‐country evidence," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 912-930, September.
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    8. Muzaffarjon Ahunov & Leo Van Hove, 2020. "National culture and financial literacy: international evidence," Applied Economics, Taylor & Francis Journals, vol. 52(21), pages 2261-2279, May.
    9. Torsten Persson & Guido Tabellini, 2004. "Constitutional Rules and Fiscal Policy Outcomes," American Economic Review, American Economic Association, vol. 94(1), pages 25-45, March.
    10. Lo Prete, Anna, 2013. "Economic literacy, inequality, and financial development," Economics Letters, Elsevier, vol. 118(1), pages 74-76.
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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