Replication data for: Keeping It Simple: Financial Literacy and Rules of Thumb
- Drexler, Alejandro
- Fischer, Greg
- Schoar, Antoinette
AbstractMicro-entrepreneurs often lack the financial literacy required to make important financial decisions. We conducted a randomized evaluation with a bank in the Dominican Republic to compare the impact of two distinct programs: standard accounting training versus a simplified, rule-of-thumb training that taught basic financial heuristics. The rule-of-thumb training significantly improved firms' financial practices, objective reporting quality, and revenues. For micro-entrepreneurs with lower skills or poor initial financial practices, the impact of the rule-of-thumb training was significantly larger than that of the standard accounting training, suggesting that simplifying training programs might improve their effectiveness for less sophisticated individuals.
Is supplement to
DOI: 10.1257/app.6.2.1 (Text)
Drexler, Alejandro, Greg Fischer, and Antoinette Schoar. “Keeping It Simple: Financial Literacy and Rules of Thumb.” American Economic Journal: Applied Economics 6, no. 2 (April 2014): 1–31. https://doi.org/10.1257/app.6.2.1.
- ID: 10.1257/app.6.2.1 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12