A growing body of literature shows that financial literacy affects household savings and investment choices. Less attention has, however, been devoted to its effect on debt behavior. This paper contributes to filling this gap by considering how financial literacy influences household attitudes...

The concept of familiarity has been used in finance theory to explain apparent paradoxes in people's behavior, such as the home bias in portfolio choices. This study investigates whether (lack of) familiarity with the language of financial consumers may contribute to an explanation of the...

By requiring individuals to decide whether to participate in (newly established) pension funds, how much to contribute and how to invest their retirement wealth, pension reforms have raised concerns about the ability of households to deal with financial decisions. Using the Bank of Italy's...