Sunday, February 15, 2009

Measuring the Financial Sophistication of Households

the Economic logic blog points to an interesting new paper on measuring different types of financial mistakes and the predictors of who makes them

1 comment:

Kevin Denny said...

when i was at IAREP in Rome I got talking to this Israeli psychologist who was working on peoples perceived understanding of macroeconomics. There were 2 key results 1)People vastly over-estimated their expertise 2) They believed in virtuous & vicious cycles i.e. they thought that bad things inevitably went together & likewise good ones. So if you a shock the unemployment & inflation tend to go up, growth goes down etc