Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study

This study tests the effectiveness of behavioral-based disclosure formats. Around 1,700 individuals from Mexico and Peru chose among loans and savings accounts presented in different formats, including a simplified key facts statement (KFS) and cur...

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Main Authors:	Gine, Xavier, Martínez Cuellar, Cristina, Mazer, Rafael Keenan
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	FINANCIAL INFORMATION DISCLOSURE LAB EXPERIMENT FINANCIAL LITERACY
Online Access:	http://documents.worldbank.org/curated/en/513631507130361973/Information-disclosure-and-demand-elasticity-of-financial-products-evidence-from-a-multi-country-study http://hdl.handle.net/10986/28455

id	okr-10986-28455
recordtype	oai_dc
spelling	okr-10986-284552021-06-08T14:42:45Z Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study Gine, Xavier Martínez Cuellar, Cristina Mazer, Rafael Keenan FINANCIAL INFORMATION DISCLOSURE LAB EXPERIMENT FINANCIAL LITERACY This study tests the effectiveness of behavioral-based disclosure formats. Around 1,700 individuals from Mexico and Peru chose among loans and savings accounts presented in different formats, including a simplified key facts statement (KFS) and current marketing brochures. The study finds that the price elasticity of loans is -1.04 using brochures and -3.19 using the simplified KFS, with smaller effects for savings products. Finally, while financial literacy is correlated with better decision-making, the effect of the disclosure format for loans is about three times as large as that of financial literacy. More importantly, the KFS helps financially illiterate individuals relatively more. 2017-10-05T17:08:21Z 2017-10-05T17:08:21Z 2017-10 Working Paper http://documents.worldbank.org/curated/en/513631507130361973/Information-disclosure-and-demand-elasticity-of-financial-products-evidence-from-a-multi-country-study http://hdl.handle.net/10986/28455 English en_US Policy Research Working Paper;No. 8210 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico Peru
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	FINANCIAL INFORMATION DISCLOSURE LAB EXPERIMENT FINANCIAL LITERACY
spellingShingle	FINANCIAL INFORMATION DISCLOSURE LAB EXPERIMENT FINANCIAL LITERACY Gine, Xavier Martínez Cuellar, Cristina Mazer, Rafael Keenan Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study
geographic_facet	Latin America & Caribbean Mexico Peru
relation	Policy Research Working Paper;No. 8210
description	This study tests the effectiveness of behavioral-based disclosure formats. Around 1,700 individuals from Mexico and Peru chose among loans and savings accounts presented in different formats, including a simplified key facts statement (KFS) and current marketing brochures. The study finds that the price elasticity of loans is -1.04 using brochures and -3.19 using the simplified KFS, with smaller effects for savings products. Finally, while financial literacy is correlated with better decision-making, the effect of the disclosure format for loans is about three times as large as that of financial literacy. More importantly, the KFS helps financially illiterate individuals relatively more.
format	Working Paper
author	Gine, Xavier Martínez Cuellar, Cristina Mazer, Rafael Keenan
author_facet	Gine, Xavier Martínez Cuellar, Cristina Mazer, Rafael Keenan
author_sort	Gine, Xavier
title	Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study
title_short	Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study
title_full	Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study
title_fullStr	Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study
title_full_unstemmed	Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study
title_sort	information disclosure and demand elasticity of financial products : evidence from a multi-country study
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/513631507130361973/Information-disclosure-and-demand-elasticity-of-financial-products-evidence-from-a-multi-country-study http://hdl.handle.net/10986/28455
_version_	1764466957150584832

Information Disclosure and Demand Elasticity of Financial Products : Evidence from a Multi-Country Study

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