Household over-indebtedness has increased worldwide. This study investigates one possible reason for this increase: biased income expectations. Thereby, we refer to the "permanent income hypothesis", which predicts that individuals borrow more today if they expect a higher income in the future....

We study the effect of financial literacy on financial inclusion at the cross country level. Financial literacy is strongly related to higher financial inclusion (i.e. access and use of fin. services) and IV-regressions support a causal interpretation.Studying heterogeneous effects of financial...

While financial inclusion is typically addressed by improving the financial infrastructure we show that financial literacy, representing the demand-side of financial markets, also has a beneficial effect. We study this effect at the cross-country level, which allows to consider institutional...

While financial inclusion is typically addressed by improving the financial infrastructure, we show that a higher degree of financial literacy also has a clear beneficial effect. We study this effect at the cross-country level, which allows us to consider institutional variation. Regarding...

While financial inclusion is typically addressed by improving the financial infrastructure, we show that a higher degree of financial literacy also has a clear beneficial effect. We study this effect at the cross-country level, which allows us to consider institutional variation. Regarding...

The aim of this paper is twofold: First, we implement and validate the famous Big Five model on personality traits in a rural developing country setting. Second, we provide micro level evidence that examines personality traits of rural households in Thailand and Vietnam. Using new representative...

This paper investigates how witnessing adverse events affects individuals' perceptions and consequently their personal subjective well-being. In order to do so, we compare material well-being dynamics with changes in subjective well-being. We link GIS data on local flood shocks to an extensive...

The Big Five model is widely used to measure and analyse personality traits in developed countries. However, there exist concerns regarding its validity in developing countries. We use a novel data set on personality traits from rural Thailand and Vietnam on around 4,000 individuals to test the...

This paper investigates how witnessing adverse weather events affects individuals' perceptions and consequently their personal well-being. To identify potential exposure to a weather shock, we link satellite-based data on flooding to an extensive household panel survey from rural Southeast Asia....