Normative analyses of household financial decisions typically assume parameters of the household utility function. Some general issues on parameter assumptions for normative analysis are discussed in this study. We review selected normative household analyses appearing in finance and economics...

This study investigated the effect of objective and subjective financial literacy on mortgage payment delinquency using the 2015 National Financial Capability Study dataset. A hierarchical model showed a substantial negative effect of objective literacy on delinquency, but subjective literacy...

Economists conducting normative analyses of household financial decisions typically assume specific values of parameters of the household utility function. We review 12 normative analyses and discuss justifications for the personal discount rates assumed. None of the normative articles cited an...

Analyses of the 2016 Survey of Consumer Finances (SCF) dataset found that 33% of households had comprehensive financial assets (excluding retirement funds) sufficient to cover 3 months of spending. We conducted a hierarchical model and found that objective literacy (score on a financial...

Cryptocurrency has been increasingly popular with investors in US financial market. Using the 2018 National Financial Capability Study Investor survey, this study examined the association between investment literacy and cryptocurrency investment. About 13% of investors invested in cryptocurrency...

Using a sample of 1,215 US retail investors, we provide evidence on the effect of investment literacy and of investment literacy overconfidence on the likelihood of purchasing securities on margin, and also, among those who had purchased securities on margin, the likelihood of experiencing a...