Economic Literacy and Money Illusion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Economic Literacy and Money Illusion write by Helena Chytilova. This book was released on 2017-07-14. Economic Literacy and Money Illusion available in PDF, EPUB and Kindle. The concept of money illusion, a recently resurrected phenomenon of behavioral economics, is a real fact of economic life, the potential role of which should no longer be dismissed. Despite money illusion being utterly suppressed by mainstream economists, small deviations from rationality, together with trends in behavioral economics, alleviate the denial of money illusion induced by the rational expectations revolution. This book argues that money illusion seems to be a ubiquitous phenomenon, affecting various areas such as financial markets, housing markets, labor markets, consumption-saving decisions, and even development at the aggregate level induced by coordination issues. Furthermore, in light of the educational efforts of central banks and other institutions, it is worth considering whether solid economic training would provide guidance for the public regarding their decision-making and thereby alleviate the effects of money illusion. The emerging field of experimental economics provides a unique opportunity for us to verify the presence of money illusion. Specifically, attention is devoted to the experimental investigation of reduction in the direct and indirect effects of money illusion with respect to the level of economic literacy acquired through economic education. Economic Literacy and Money Illusion will be of interest to the general audience and to those who are interested in behavioral economics, economics education, and experimental economics, as well as to policy makers and institutions. Last but not least, it will help develop students’ interest in alternative economic theories. NB. The research and writing of this book was made possible with the support of the University of Economics, Prague, Faculty of Economics, Department of Economics.
The Money Illusion
The Money Illusion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Money Illusion write by Irving Fisher. This book was released on 1928. The Money Illusion available in PDF, EPUB and Kindle.
Economic Literacy
Economic Literacy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Economic Literacy write by Jacob De Rooy. This book was released on 1996. Economic Literacy available in PDF, EPUB and Kindle. Explains basic economics, with sections on topics such as employment, prices, households and businesses, credit, taxes, and international trade.
Does Money Illusion Matter?
Does Money Illusion Matter? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Does Money Illusion Matter? write by Ernst Fehr. This book was released on 2000. Does Money Illusion Matter? available in PDF, EPUB and Kindle.
Financial Literacy and Stock Market Participation
Financial Literacy and Stock Market Participation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Literacy and Stock Market Participation write by Maarten van Rooij. This book was released on 2007. Financial Literacy and Stock Market Participation available in PDF, EPUB and Kindle. Individuals are increasingly put in charge of their financial security after retirement. Moreover, the supply of complex financial products has increased considerably over the years. However, we still have little or no information about whether individuals have the financial knowledge and skills to navigate this new financial environment. To better understand financial literacy and its relation to financial decision-making, we have devised two special modules for the DNB Household Survey. We have designed questions to measure numeracy and basic knowledge related to the working of inflation and interest rates, as well as questions to measure more advanced financial knowledge related to financial market instruments (stocks, bonds, and mutual funds). We evaluate the importance of financial literacy by studying its relation to the stock market: Are more financially knowledgeable individuals more likely to hold stocks? To assess the direction of causality, we make use of questions measuring financial knowledge before investing in the stock market. We find that, while the understanding of basic economic concepts related to inflation and interest rate compounding is far from perfect, it outperforms the limited knowledge of stocks and bonds, the concept of risk diversification, and the working of financial markets. We also find that the measurement of financial literacy is very sensitive to the wording of survey questions. This provides additional evidence for limited financial knowledge. Finally, we report evidence of an independent effect of financial literacy on stock market participation: Those who have low financial literacy are significantly less likely to invest in stocks.
