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Optimal Financial Knowledge and Wealth Inequality

Dados Bibliográficos

ID10182001
AutoresAnnamaria Lusardi (0000-0002-2378-7489, George Washington University), Pierre-Carl Michaud (0000-0003-3114-4229, HEC Montréal), Olivia S Mitchell (0000-0002-6419-8314, National Bureau of Economic Research)
Ano2017
Volume125
Fascículo2
Páginas431-477
Data de publicação2017-03-07
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoJournal of Political Economy (JOURNAL)
Identificadores do periódicoISSN: 0022-3808 • E-ISSN: 1537-534X
EditoraUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/690950
PMID28555088
OpenAlexW3124526872
IdiomaEN
Citações recebidas70
Referências citadas46

We show that financial knowledge is a key determinant of wealth inequality in a stochastic lifecycle model with endogenous financial knowledge accumulation, where financial knowledge enables individuals to better allocate lifetime resources in a world of uncertainty and imperfect insurance. Moreover, because of how the U.S. social insurance system works, better-educated individuals have most to gain from investing in financial knowledge. Our parsimonious specification generates substantial wealth inequality relative to a one-asset saving model and one where returns on wealth depend on portfolio composition alone. We estimate that 30-40 percent of retirement wealth inequality is accounted for by financial knowledge

Asset (computer security · Economics · Financial asset · Financial economics · Imperfect · Inequality · National wealth · Portfolio · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Insurance, Mortality, Demography, Risk Management

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Obras citantes distintas70
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Intervalo de citações2017 - 2026 (10)
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Altamente citadoNão
Tipos de citaçãoNeutras: 70
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