Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180920 
Year of Publication: 
2018
Series/Report no.: 
SAFE Working Paper No. 217
Publisher: 
Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe, Frankfurt a. M.
Abstract: 
A growing body of literature shows the importance of financial literacy in house-holds' financial decisions. However, fewer studies focus on understanding the determinants of financial literacy. Our paper fills this gap by analyzing a specific determinant, the educational system, to explain the heterogeneity in financial literacy scores across Germany. We suggest that the lower financial literacy observed in East Germany is partially caused by a different institutional framework experienced during the Cold War, more specifically, by the socialist educational system of the GDR which affected specific cohorts of individuals. By exploiting the unique set-up of the German reunification, we identify education as a channel through which institutions and financial literacy are related in the German context.
Subjects: 
financial literacy determinants
socialist education
German reunification
DiD
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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