Testing the Relationship Between Confidence and Effort: A Behavioral Finance Perspective on the Problem of Financial Literacy

Added Title

DLSU-AKI Working Paper Series 2021-12-080

Authors

Louie Bernard A. Jacob, De La Salle Univerity, Manila
Miguel Angelo S. Rabago, De La Salle University, Manila
Hans Erickson A. Tan, De La Salle University, Manila
Lawrence B. Dacuycuy, De La Salle University, Manila
Gerardo L. Largoza, De La Salle University, Manila
Maria Fe Carmen L. Dabbay, De La Salle University, Manila

College

School of Economics

Department/Unit

Economics

Document Type

Working Paper

Publication Date

12-2021

Abstract

This experimental study tested the relationship between confidence and effort with the ultimate objective of discovering how these factors may influence financial literacy. This was done through a modified version of a slider test and ball allocation task. The population consisted of 85 random participants who were primarily approached through social media. A simple OLS regression, along with robustness checks, namely the Tobit model and instrumental variable (IV) regression model using Tobit estimators, were utilized to confirm the causal relationship between confidence and effort.

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Recommended Citation

Jacob, L. A., Rabago, M. S., Tan, H. A., Dacuycuy, L. B., Largoza, G. L., & Dabbay, M. L. (2021). Testing the Relationship Between Confidence and Effort: A Behavioral Finance Perspective on the Problem of Financial Literacy. Retrieved from https://animorepository.dlsu.edu.ph/res_aki/9

Disciplines

Behavioral Economics | Finance | Growth and Development

Keywords

Financial Literacy; Finance; buying power

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