Financial vulnerability and financial literacy in Paraguay: the need of a transversal approach of public policy-Reference-Cited by-同舟云学术

Financial vulnerability and financial literacy in Paraguay: the need of a transversal approach of public policy

Published:2023-04-28 Issue: Volume: Page:
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Author:

Roa María José¹,Villegas Alejandra²

Affiliation:

1. Instituto de Investigaciones Económicas y Sociales Francisco de Vitoria. Mexico City

2. Ibero American University

Abstract

Abstract This paper aimed at studying the main determinants of financial inclusion and financial vulnerability of Paraguayan households. Using a Financial Capabilities Survey in Paraguay we performed a synthetic instrumental variables methodology that indicates that financial literacy is an important determinant of financial inclusion and financial resilience in this country. The results enhance the development of financial education programs that consider personality traits and economic preferences of individuals. The individual characteristics that explain financial inclusion and financial vulnerability in this country are also related to socioeconomic vulnerabilities. Our main conclusion is that the most successful interventions to alleviate financial vulnerability are those that integrate transversally financial inclusion and financial education programs with social programs aimed at reducing labor, education, and economic vulnerabilities in this country. JEL Classification: G50, G51, G53, G41, J16.

Publisher

Research Square Platform LLC

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