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PricesKnowledge.pdf
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📊 Size: 605 KB
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Summary

Financial development is crucial for economic growth, but the demand for financial services in emerging markets is not well understood. A study in Indonesia and India found a strong correlation between financial literacy and behavior, but a financial education program had modest effects, increasing demand for bank accounts only for those with limited education or financial literacy. In contrast, small subsidies greatly increased demand, with a three-fold increase in bank account openings when subsidies were increased from $3 to $14. A follow-up survey two years later confirmed these findings, showing that newly opened accounts remained open and in use. The study suggests that prices, rather than knowledge, drive demand for financial services in emerging markets.

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Description

Financial development is crucial for economic growth, but the demand for financial services in emerging markets is not well understood.

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  • File Format: PDF
  • File Size: 605 KB
  • Pages: 35
  • Language: EN
  • Total Downloads: 20
  • Last Updated: 2 months ago

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