Abstract
We study the impact of financial education on intertemporal choice in adolescence. The educational program was randomly assigned among high-school students and choices were measured using an incentivized experiment. Students who participated in the program make more time-consistent choices; are more likely to allocate payments to a single payment date, as opposed to spreading payment across two dates; and display increased consistency of choice with the law of demand. These findings suggest that financial education increases the quality of
intertemporal decision-making and decreases narrow bracketing.
intertemporal decision-making and decreases narrow bracketing.
Original language | English |
---|---|
Pages (from-to) | 309-332 |
Number of pages | 24 |
Journal | American Economic Journal: Economic Policy |
Volume | 10 |
Issue number | 3 |
DOIs | |
Publication status | Published - Aug 2018 |
Keywords
- Intertemporal Choice, Financial Education, Experiment