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Financial information in Colombia

Author

Listed:
  • Gine,Xavier
  • Garcia,Nidia
  • Gomez-Gonzalez,Jose
  • Gine,Xavier
  • Garcia,Nidia
  • Gomez-Gonzalez,Jose

Abstract

An audit study was conducted in Colombia following the protocols in Giné and Mazer (2017). Trainedauditors visited multiple financial institutions (both regulated and unregulated), seeking credit and savingsproducts. Consistent with Gabaix and Laibson (2006) and similar to Giné and Mazer (2017), the staff onlyprovided information about the cost when asked, disclosing less than a third of the total cost voluntarily. Inaddition, clients were rarely offered the cheapest product, most likely because staff was incentivized tooffer more expensive and thus more profitable products to the institution.

Suggested Citation

  • Gine,Xavier & Garcia,Nidia & Gomez-Gonzalez,Jose & Gine,Xavier & Garcia,Nidia & Gomez-Gonzalez,Jose, 2017. "Financial information in Colombia," Policy Research Working Paper Series 7998, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7998
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    References listed on IDEAS

    as
    1. Xavier Gabaix & David Laibson, 2018. "Shrouded attributes, consumer myopia and information suppression in competitive markets," Chapters, in: Victor J. Tremblay & Elizabeth Schroeder & Carol Horton Tremblay (ed.), Handbook of Behavioral Industrial Organization, chapter 3, pages 40-74, Edward Elgar Publishing.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    3. Robert, Jacques & Stahl, Dale O, II, 1993. "Informative Price Advertising in a Sequential Search Model," Econometrica, Econometric Society, vol. 61(3), pages 657-686, May.
    4. Adele Atkinson & Flore-Anne Messy, 2012. "Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study," OECD Working Papers on Finance, Insurance and Private Pensions 15, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. John D. Castro-Pantoja & Jose Eduardo Gomez-Gonzalez & Tatiana A. Mora-Arbelaez & Daniela Rodriguez-Novoa & Laura C. Diaz-Barreto, 2018. "Bancarization and Violence in Colombia," Borradores de Economia 1052, Banco de la Republica de Colombia.
    2. Muñoz-Murillo, Melisa & Álvarez-Franco, Pilar B. & Restrepo-Tobón, Diego A., 2020. "The role of cognitive abilities on financial literacy: New experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
    3. Laura Catalina Díaz-Barreto & Juliana Gamboa-Arbelaez & Jose Eduardo Gomez-Gonzalez & Adolfo Meisel-Roca, 2017. "Costos de Intermediación Bancaria en Economías Emergentes: La Importancia de las Instituciones," Borradores de Economia 998, Banco de la Republica de Colombia.

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    More about this item

    Keywords

    Legal Institutions of the Market Economy; Educational Sciences; Financial Literacy; Finance and Development; Financial Sector Policy;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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