Template-type: ReDIF-Paper 1.0
Author-Name: Giuseppe Bertola     
Author-Email: giuseppe.bertola@unito.it. 
Author-Name: Anna Lo Prete,
Author-Email: anna.loprete@unito.it 
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Financial Literacy and Risk Protection During the Covid-19 Pandemic.
Abstract: Financial markets cannot protect from aggregate shocks but can help smooth their
idiosyncratic implications across individuals. In reality, of course, markets are incomplete
and may not be accessible or be used appropriately. Thus, aggregate shocks that impact
individual incomes differently can be associated with idiosyncratic welfare effects
through poor diversification or random mistakes. Empirical analysis of data from Italy
during the first phase of the Covid-19 pandemic documents that, across households, the
relationship between income and consumption shocks indeed depended in theoretically
sensible ways on financial asset ownership, financial literacy, and saving choices as well
as on public transfers.
Length: pages 31
Creation-Date: 2023-12
File-URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2023dip/wp_25_2023.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:202325