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Preferences, financial literacy, and economic development

Núria Rodríguez‐Planas & Maddalena Davoli

Journal of Pension Economics and Finance2025https://doi.org/10.1017/s1474747225100048article
AJG 2ABDC B
Weight
0.50

Abstract

Using data from 74 countries, we uncover important differences in the association between financial literacy and preferences by the level of economic development. Patience is salient and positively associated to financial literacy in wealthier countries, i.e., countries with GDP per capita above the sample median. This association is not driven by a multitude of institutional or cultural factors known to be related to financial literacy. In impoverished countries, we document a higher level of financial literacy in countries with higher levels of risk-taking but lower levels of trust, positive reciprocity, and altruism. Countries’ legal origin drives most of the association with risk-taking, trust, and positive reciprocity while their religious composition drives the association between altruism and financial knowledge. Our findings underscore that financial education programs need to be tailored to the cultural aspect of group preferences and suggest what type of traits policies and programs ought to be reinforced in poorer countries.

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https://doi.org/https://doi.org/10.1017/s1474747225100048

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@article{núria2025,
  title        = {{Preferences, financial literacy, and economic development}},
  author       = {Núria Rodríguez‐Planas & Maddalena Davoli},
  journal      = {Journal of Pension Economics and Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1017/s1474747225100048},
}

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Preferences, financial literacy, and economic development

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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