TY  - RPRT
        AU  - Almenberg, Johan
AU  - Gerdes, Christer
        TI  - Exponential Growth Bias and Financial Literacy
        PY  - 2011/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5814
        UR  - https://www.iza.org/publications/dp5814
        AB  - The tendency to underestimate the future value of a variable growing at a constant rate, an example of exponential growth bias, has been linked to household financial decision making. We show that exponential growth bias and standard measures of financial literacy are negatively correlated in a representative sample of Swedish adults. Since financial literacy is linked to household decision making, our results indicate that examining the relationship between exponential growth bias and household finance without adequate controls for financial literacy may generate biased results.
        KW  - financial literacy
KW  - exponential growth bias
KW  - household finance
        ER  -