Discounting financial literacy: Time preferences and participation in financial education programs

Journal of Economic Behavior and Organization

Volumn 95, Issue , 2013, Pages 159-174

  Meier, Stephan ^a   Sprenger, Charles D ^b  

^a Howard Hughes Medical Institute   (United States)

^b STANFORD UNIVERSITY   (United States)

Author keywords

Experiments; Financial literacy; Selection; Time preferences

Indexed keywords

EID: 84887025656     PISSN: 01672681     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jebo.2012.02.024     Document Type: Article

References (46)

1. Anderhub V., Guth W., Gneezy U., Sonsino D. On the interaction of risk and time preferences: an experimental study. German Economic Review 2001, 2(3):239-253.
2. Andersen S., Harrison G.W., Lau M.I., Rutstrom E.E. Eliciting risk and time preferences. Econometrica 2008, 76(3):583-618.
3. Andreoni, J., Sprenger, C., 2009. Time preferences with convex budgets. Working paper.
4. Avery R.B., Bostic R.W., Calem P.S., Canner G.G. An overview of consumer data and credit reporting. Federal Reserve Bulletin 2003, 89:47-73.
5. Becker G.S., Mulligan C.B. The endogenous determination of time preferences. Quarterly Journal of Economics 1997, 112(3):729-758.
6. Benjamin, D., Brown, S., Shapiro, J., 2006. Who is 'behavioral'? Cognitive ability and anomalous preferences. Working paper.
7. Benzion U., Rapoport A., Yagil J. Discount rates inferred from decisions: an experimental study. Management Science 1989, 35(3):270-284.
8. Bernanke, B., 2006. Financial literacy. Testimony before the Committee on Banking, Housing, and Urban Affairs of the United States Senate on May 23.
9. Bernheim D.B., Garrett D.M., Maki D.M. Education and saving: the long-term effect of high school financial curriculum mandates. Journal of Public Economics 2001, 80(3):435-465.
10. Bettinger E., Slonim R. Patience among children. Journal of Public Economics 2007, 91(1-2):343-363.
11. Burks S., Carpenter J., Goette L., Rustichini A. Cognitive skills affect economic preferences, strategic behavior, and job attachment. Proceedings of the National Academy of Sciences of the United States of America 2009, 106(19):7745-7750.
12. Castillo, M., Ferraro, P., Jordan, J., Petrie, R., 2010. The today and tomorrow of kids. Working paper.
13. Cawley J., Heckman J., Vytlacil E. Three observations on wages and measured cognitive ability. Labour Economics 2001, 8(4):419-442.
14. Chabris C., Laibson D., Morris C., Schuldt J., Taubinsky D. Individual laboratory-measured discount rates predict field behavior. Journal of Risk and Uncertainty 2008, 37(2-3):237-269.
15. Chabris, C., Laibson, D., Morris, C., Schuldt, J., Taubinsky, D., 2008. Measuring intertemporal preferences using response times. Working paper.
16. Cole, S., Shastry, G.K., 2007. If you are so smart, why aren't you rich? The effects of education, financial literacy and cognitive ability on financial market participation. Working paper.
17. Coller M., Williams M.B. Eliciting individual discount rates. Experimental Economics 1999, 2:107-127.
18. DellaVigna S., Paserman D.M. Job search and impatience. Journal of Labor Economics 2005, 23(3):527-588.
19. Dohmen, T., Falk, A., Huffman, D., Sunde, U., Schupp, J., Wagner, G.G., 2011. Individual risk attitudes: measurement, determinants, and behavioral consequences. Journal of the European Economic Association 9 (3), 522-550.
20. Duflo E., Saez E. The role of information and social interaction in retirement plan decisions: evidence from a randomized experiment. Quarterly Journal of Economics 2003, 118(3):815-841.
21. Eckel C.C., Johnson C., Monmarquette C. Saving decisions of the working poor: Short and long-term horizons. Research in Experimental Economics 2005, vol. 10. JAI Press, Greenwich/London. J. Carpenter, G.W. Harrison, J.A. List (Eds.).
22. Elliehausen G., Lundquist E.C., Staten M.E. The impact of credit counseling on subsequent borrower behavior. Journal of Consumer Affairs 2007, 41(1):1-28.
23. Fang, H., Silverman, D., 2009. Time-inconsistency and welfare program participation: evidence from the NLSY. International Economic Review 50 (4), 1043-1077.
24. Frederick S., Loewenstein G., O'Donoghue T. Time discounting and time preference: a critical review. Journal of Economic Literature 2002, 40(2):351-401.
25. Gerardi, K., Goette, L., Meier, S., 2010. Financial literacy and subprime mortgage delinquency: evidence from a survey matched to administrative data. Working paper.
26. Harrison G.W., Lau M.I., Williams M.B. Estimating individual discount rates in Denmark: a field experiment. American Economic Review 2002, 92(5):1606-1617.
27. Harrison G.W., Lau M.I., Rutstrom E.E., Williams M.B. Eliciting risk and time preferences using field experiments: some methodological issues. Research in Experimental Economics 2005, vol. 10. JAI Press, Greenwich/London. J. Carpenter, G.W. Harrison, J.A. List (Eds.).
28. Hartarska V., Gonzalez-Vega C. Evidence on the effect of credit counseling on mortage loan default by low-income households. Journal of Housing Economics 2006, 15(1):63-79.
29. Ifcher, J., Zarghamee, H., 2011. Happiness and time preference: the effect of positive affect in a random-assignment experiment. American Economic Review 101 (7), 3109-3129.
30. Jacobson S., Petrie R. Learning from mistakes: what do inconsistent choices over risk tell us?. Journal of Risk and Uncertainty 2009, 38(2):143-158.
31. John Hancock Financial Services, 2002. Insights into participant investment knowledge and behavior; eighth defined contribution plan survey. Mimeo.
32. Levinger B., Benton M., Meier S. The cost of not knowing the score: self-estimated credit scores and financial outcomes. Journal of Family and Economic Issues 2011, 32(4):566-585.
33. Lusardi, A., 2006. Financial literacy and financial education: review and policy implications. NFI Policy Brief No. 2006-PB-11.
34. Lusardi A., Mitchell O.S. Financial literacy and retirement preparedness: evidence and implications for financial education programs. Business Economics 2007, January:35-44.
35. Lusardi, A., Tufano, P., 2008. Debt literacy, financial experience, and overindebteness. Working paper. Harvard University.
36. Mandell L. Financial Literacy: Are We Improving? 2004, JumpStart Coalition for Personal Financial Literacy, Washington, DC.
37. Meier, S., Sprenger, C., 2009. Temporal stability of time preferences. Working paper.
38. Meier S., Sprenger C. Present-biased preferences and credit card borrowing. American Economic Journal: Applied Economics 2010, 2(1):193-210.
39. Meier, S., Sprenger, C., 2012. Time discounting predicts creditworthiness. Psychological Science 23(1), 56-58.
40. Mischel W., Shoda Y., Rodriquez M.L. Delay of gratification in children. Science 1989, 244(4907):933-938.
41. Munasinghe L., Sicherman N. Why dancers smoke? Smoking, time preferences, and wage dynamics. Eastern Economic Journal 2006, 32(4):595-616.
42. National Council on Economic Education, 2005. What American teens and adults know about economics. Mimeo.
43. Reuben, E., Sapienza, P., Zingales, L., 2009. Time discounting for primary and monetary rewards. Economics Letters 106 (2), 125-127.
44. Skiba, P.M., Tobacman, J., 2007. Payday loans, uncertainty, and discounting: explaining patterns of borrowing, repayment, and default. Working paper.
45. Stewart M.B. On least squares estimation when the dependent variable is grouped. The Review of Economic Studies 1983, 50(4):737-753.
46. Tanaka T., Camerer C., Nguyen Q. Risk and time preferences: linking experimental and household survey data from Vietnam. The American Economic Review 2010, 100(1):557-571.