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Rich and Co.

Admitting Weak Results for Financial Education, Behavioral Approaches and Incentives

with one comment

“Mixed” results really means little is learned or was produced of value. Imagine your doctor telling you the effects of his treatments are “mixed!?”

Here is a brieef review from a recent behavioral econ paper:

‘To improve consumer decisions, governments, employers, and financial institutions have promoted various forms of financial education. However, evidence regarding the effectiveness of financial education is mixed.’

In response to such consumer deficiencies, governments, employers, and financial institutions have begun to engage in financial education. Examples of education initiatives include paycheck stuffers, newsletters, summary plan descriptions, seminars, individual consultations with financial planners, and access to Internet-based education and planning tools. Unfortunately, studies of the effectiveness of such interventions have revealed mixed results. Although some researchers have decisions, others have critiqued this work for use of nonrepresentative samples, for the researchers’ reliance on statements of intention rather than actual behavior, and because it confounds a firm’s provision of financial education with other factors that influence saving behavior, such as the level and structure of compensation”

excertped from Subjective Knowledge in Consumer Financial Decisions – LIAT HADAR, et al ’13

 

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Written by Rich and Co.

July 19, 2013 at 9:19 pm

Posted in Uncategorized

One Response

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  1. You actually make it seem so easy with your presentation but I find
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    August 10, 2013 at 5:21 am


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