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Inclusive financial literacy through Microfinance Institutions activities is becoming a policy issue in both developed and developing nations of the world as it has been perceived as a veritable tool for economic development. This work examines the impact of Microfinance Institutions on financial Literacy in North Central Geo-Political Zone Nigeria. The specific objectives are to establish the relationship between saving mobilization as microfinance institutions operations and financial literacy, analyze the effect of microfinance institutions accessibility on E-banking platform usage and identify the effects of microfinance institutions activities on the financial decisions of the rural dwellers. Descriptive design method was adopted; 50 respondents was selected from each of the six Microfinance Institutions that was selected from each of the six states of the north central geo-political zone that serve as the fair representation of the population under study a total of 1800 questionnaires were administered out of which 1494 was returned. Data for the study were collected primarily through questionnaire from the 1494 respondents that serve as the fair representations for the population under study. The formulated hypotheses were tested with the aid of regression and correlation while preliminary test was done with the aid of Kolmogorov-Smirnov and Shapiro Wilk with a view to ascertain the normality of the data. Similarly, Reliability test was conducted with the aid of Cronbach's Alpha. The overall results of the regression analysis reveals that a positive relationship exist between MFIs activities and financial literacy given cognizance to the reported coefficients on the adopted variables. Therefore, it was recommended that Government should promote financial sector deepening by licensing more microfinance institutions, to promote accessibility to finance among its populous to improve the level of financial literacy in Nigeria. This will increase their ability to save and borrow thereby contribute positively to economic development.

Inclusive financial literacy through Microfinance Institutions activities is becoming a policy issue in both developed and developing nations of the world as it has been perceived as a veritable tool for economic development. This work examines the impact of Microfinance Institutions on financial Literacy in North Central Geo-Political Zone Nigeria. The specific objectives are to establish the relationship between saving mobilization as microfinance institutions operations and financial literacy, analyze the effect of microfinance institutions accessibility on E-banking platform usage and identify the effects of microfinance institutions activities on the financial decisions of the rural dwellers. Descriptive design method was adopted; 50 respondents was selected from each of the six Microfinance Institutions that was selected from each of the six states of the north central geo-political zone that serve as the fair representation of the population under study a total of 1800 questionnaires were administered out of which 1494 was returned. Data for the study were collected primarily through questionnaire from the 1494 respondents that serve as the fair representations for the population under study. The formulated hypotheses were tested with the aid of regression and correlation while preliminary test was done with the aid of Kolmogorov-Smirnov and Shapiro Wilk with a view to ascertain the normality of the data. Similarly, Reliability test was conducted with the aid of Cronbach's Alpha. The overall results of the regression analysis reveals that a positive relationship exist between MFIs activities and financial literacy given cognizance to the reported coefficients on the adopted variables. Therefore, it was recommended that Government should promote financial sector deepening by licensing more microfinance institutions, to promote accessibility to finance among its populous to improve the level of financial literacy in Nigeria. This will increase their ability to save and borrow thereby contribute positively to economic development.

How do households respond to job loss, and which self-insurance channels are most important? By linking customer data from the largest bank in Denmark with information from government administrative registers, we quantify a broad range of responses to job loss in a unified empirical framework. Two response margins stand out: during the first 24 months after job loss, households reduce spending by 30% of the income loss while reduced saving in liquid assets accounts for 50%. Other response margins highlighted in the literature - spousal labor supply, private transfers, home equity extraction, mortgage refinancing, and consumer credit - are less important.

We measure consumers' readiness to face emergency expenses. Based on data from a representative survey of US consumers, we find that financial readiness varies widely across consumers, with lowest-income, least-educated, unemployed, and black consumers most likely to have $0 saved for emergency expenses. For these consumers, even a temporary financial shock, either an unexpected negative income shock (such as a layoff or a short-term government shutdown) or an unexpected expenditure (such as a medical expense or a car repair), could have severe financial consequences. The literature likely underestimates the consequences, because consumers who are not financially prepared to cover unexpected expenses are more likely to borrow on their credit cards, adding to their existing debt. Thus the cost of relying on credit cards is likely very high for consumers who are already financially vulnerable. We use panel data to examine whether consumers who experienced a substantial drop in income from one year to the next, like one resulting from a layoff or a government shutdown, increased their credit card borrowing. We do not find evidence that a negative income shock raises consumers' likelihood of revolving on credit cards or increasing the amount borrowed.

Wir nehmen die Bedeutung verhaltensökonomischer Erkenntnisse für den sozialpolitisch relevanten Bereich der Alterssicherung in den Blick. Zunächst stellen wir aktuelle Daten zur Entwicklung der Altersvorsorge in Deutschland vor, insbesondere seit der Einführung der Riester-Rente, die mit einer Veränderung des Leitbilds in der Sozialpolitik verbunden war. Dabei haben sich erklärungsbedürftige Besonderheiten im Verhalten der Bürger ergeben. Mit dem Ziel, die Konsumentensouveränität zu stärken und vor dem Hintergrund wichtiger Verhaltensanomalien, die in der Forschung zur Verhaltensökonomie beschrieben werden, diskutieren wir die Einführung von Nudges in der Sozialpolitik als Unterstützung bei der Entscheidungsfindung. Dabei muss die Frage gestellt werden, wie stark die Politik das Verhalten der Bürger steuern will. Zur Beantwortung dieser Frage hilft ein Blick nach Schweden. Dort ist das System der Alterssicherung anders organisiert, und es werden verschiedene Instrumente als Nudges eingesetzt. Durch diese Analysen können Implikationen für die Einführung von Nudges in Deutschland besser bewertet werden. ; This article focuses on the importance of behavioral economic findings for pensions as a sociopolitically relevant field. First, current data on the development of old-age provision in Germany are presented, especially since the introduction of the Riester pension, which was associated with a change inthe guiding principles in social policy. With the aim of strengthening consumer sovereignty and against the background of important behavioral anomalies described by behavioral economics research, the introduction of nudges to support decision-making is discussed. Furthermore, it is discussed how much politics should be involved in influencing the behavior of the citizens. To answer this question, we look at Sweden, where the old-age pension system is organized slightly different and nudges are implemented. By conducting these analyses implications for the introduction of nudges in Germany can be better assessed.

We provide evidence that subsidy types that are identical in monetary terms differ in their behavioral responses and consequently in their effectiveness. In particular, we observe that investments into a subsidized asset are higher under tax credit than under grant. Both subsidy types are essentially very similar, only the mechanism of the subsidy application is different. In case of a grant, an individual gains an amount of money. In case of a tax credit, no money is received directly, but the tax to be paid is decreased by the amount of the tax credit. Our results indicate that these mechanisms have a substantial impact on the effectiveness of subsidies. Applying our findings, governments can "nudge" the investors to support desired investment decisions by using a certain subsidy type. Particularly, our results suggest that when policymakers are indifferent froma budget perspective between providing a subsidy as a grant or as a tax credit, they should implement a tax credit.

Using representative household survey data, we study the short-term microeconomic effects of the Egyptian revolution on household behaviour in terms of education, health expenditure and savings. We construct a new measure of political instability by analysing the number of fatalities during political protests throughout the country. Difference-in-Differences estimations show that affected households increased spending on education, especially on their sons' higher education. This can be explained by a positive outlook towards the future, with better labour market prospects. At the same time, households decreased spending on health and increased savings, which can be interpreted as precautionary behaviour.

This paper examines how families adjust their private old-age savings in response to a change in individual pension wealth. The regression discontinuity approach exploits two expansions of the child care pension benefit, in 1992 and in 1999, as natural experiments. The empirical analysis is based on three waves of the Survey of Income and Expenditure (EVS): 1998, 2003 and 2008. All results indicate that families do not adjust their private old-age savings in response to the increase in their pension wealth. From a political point of view, this suggests that the increase in individual pension wealth does not crowd-out old-age private savings. Hence, child care pension benefits increase a mother's old-age income without causing negative savings effects.

In 2001 the German government started to promote the development of private pensions by means of special saving subsidies and tax incentives (Riester-scheme). That policy especially targets households with relatively low incomes. Using data from the German Socio-economic Panel, we scrutinize the impact of the Riester-scheme on private saving. Our estimation results suggest that the Riester-scheme neither increases the fraction of households with positive savings, nor increases the households' saving rate. Thus, rather than creating saving, this policy seems to make people substitute previous contracts by subsidized saving contracts.

Die Riester-Förderung soll dazu beitragen, dass häufiger und mehr für die Altersvorsorge gespart wird. Der Einfluss der Riester-Förderung auf die Sparneigung von Haushalten mit niedrigem Einkommen ist dabei ein zentrales Kriterium zur ökonomischen Evaluation dieser Politik. Unsere ökonometrische Untersuchung auf Basis des Soziooekonomischen Panels liefert einen in dieser Hinsicht negativen Befund : Höhere Riester-Förderquoten bei den Niedrigeinkommensbeziehern erhöhen weder den Anteil der sparenden Haushalte in dieser Gruppe noch ihre Sparquote. Somit scheint die Riester-Förderung für erhebliche Mitnahmeeffekte anfällig zu sein. ; In 2001 the German government started to promote the development of private pensions by means of special saving subsidies and tax incentives (Riester-scheme). That policy especially targets households with relatively low incomes. Using data from the German Socio-economic Panel, we scrutinize the impact of the Riester-scheme on private saving. Our estimation results suggest that the Riester-scheme neither increases the fraction of households with positive savings, nor increases the households? saving rate. Thus, rather than creating saving, this policy seems to make people substitute previous contracts by subsidized saving contracts.

Do women and men behave differently in financial asset markets? Our results from an asset market experiment show a marked gender difference in producing speculative price bubbles. Mixed markets show intermediate values, and a meta-analysis of 35 markets from different studies confirms the inverse relationship between the magnitude of price bubbles and the frequency of female traders in the market. Women's price forecasts also are significantly lower, even in the first period. Implications for financial markets and experimental methodology are discussed. (JEL D14, D81, G01, G11, J16)

Using data from a field experiment in Kenya, we document that providing individuals with simple informal savings technologies can substantially increase investment in preventative health and reduce vulnerability to health shocks. Simply providing a safe place to keep money was sufficient to increase health savings by 66 percent. Adding an earmarking feature was only helpful when funds were put toward emergencies, or for individuals that are frequently taxed by friends and relatives. Group-based savings and credit schemes had very large effects. (JEL C93, D14, D91, I12, O12)

Elderly households hold most of their wealth in housing, maintain high levels of wealth throughout retirement, and often leave bequests. The value of their houses are subject to large shocks. To what extent do these shocks affect their savings, consumption, and bequests? Answering this question requires separating precautionary savings, bequest motives, and the desire to remain in one's home. I develop and estimate a structural model of retirement savings decisions with realistic risks, housing, and heterogeneity in bequest preferences. I exploit policy changes to the taxation of housing and bequests to separately identify the different motives for holding wealth. Estimates show approximately half of retirees have no bequest motive. House price changes are quantitatively important, with 1/4 of increases passed on to future generations. I use the estimated model to evaluate means-tested programs insuring retirees' LTC expenses. I find exemptions providing marginal liquidity have larger insurance value than fully eliminating LTC expense risk per pound it costs the government.

Although natural hazard insurance is advocated as an important means of risk management, private insurance demand often remains below critical levels. Prior loss experience and the design of governmental relief schemes are two factors potentially influencing insurance decisions. We address these two elements in monetary incentivized experiments which include representations of natural hazard insurance schemes in Europe. We draw on two very different samples: First, we run a laboratory experiment with a student subject pool in Germany. In addition, we replicate the experiment as an online experiment with citizens of flood-prone areas in the city of Dornbirn (Austria). The experiment reflects two possible designs of governmental relief schemes: partial but guaranteed relief and full but nonguaranteed relief. The risk of loss is kept constant over ten consecutive rounds to analyze the effect of loss experience. In both of our samples, the design of the governmental relief scheme has no effect on insurance decisions. Furthermore, prior loss experience adversely affects insurance decisions. Uninsured subjects tend to remain uninsured after experiencing a loss, and previously insured subjects often switch to non-insurance in the rounds after the loss. These results have important policy implications, e.g., for the optimal design of flood risk communication.

Die Bundesregierung hat in ihrem Koalitionsvertrag die Verbesserung der privaten Altersvorsorge durch die Einführung eines "attraktiven standardisierten Riester-Produkts" angekündigt. Der vorliegende Beitrag argumentiert, dass nur ein flexibles, aber öffentlich-rechtlich organisiertes Standardprodukt geeignet ist, das bisherige Marktversagen bei Angeboten zur privaten Zusatzvorsorge zu korrigieren. Als zentrale Anforderungen an die Ausgestaltung eines Standardprodukts werden eine staatsferne Durchführung der operativen Aufgaben, möglichst geringe Kosten sowie Flexibilität bei Ein- und Auszahlung definiert. Von entscheidender Bedeutung ist darüber hinaus, dass Verbraucher zu jedem Zeitpunkt privatrechtliche Ansprüche gegen den öffentlich-rechtlichen Träger des Standardprodukts haben. ; In its coalition agreement the federal government announced the intention to improve private supplementary pensions by introducing an "attractive standardized Riester-Product". This article argues that a flexible, standardized product, organized by a public provider, is the only viable option to correct the market failure currently afflicting private supplementary pensions. A private execution of duties, minimal costs and high flexibility in contributions and payouts are defined as essential conditions for the implementation of this standardized product. Furthermore, it is essential that consumers have civil law claims against the public provider of the product at all times.