We present an intertemporal consumption model of consumer investment in financial literacy. Consumers benefit from such … investment because their stock of financial literacy allows them to increase the returns on their wealth. Since literacy … depreciates over time and has a cost in terms of current consumption, the model determines an optimal investment in literacy. The …

the longer their investment horizon, while the optimal allocation to stocks declines as a function of the investment … returns from the dividend yield give rise to a non-monotonic relationship between the investment horizon and the demand for …

and bond investments during accumulation of pension savings. The model has been proposed and analyzed by the authors. We … of saving, the level of savings and the short rate. We furthermore summarize the results of testing the model on the …