Subjective Belief Distributions and the Characterization of Economic Literacy

Amalia Di Girolamo, Glenn W. Harrison, Morten Lau, J. Todd Swarthout

Research output: Contribution to journalJournal articlepeer-review

Abstract

We characterize the literacy of an individual in a domain by their elicited subjective belief distribution over the possible responses to a question posed in that domain. By eliciting the distribution, rather than just the answers to true/false or multiple choice questions, we can directly measure the confidence that an individual has about their knowledge of some fact. We consider literacy across several financial and economic domains. We find considerable demographic heterogeneity in the degree of literacy. We also measure the degree of consistency within a sample about their knowledge, even when that knowledge is imperfect.
Original languageEnglish
JournalJournal of Behavioral and Experimental Economics
Volume59
Pages (from-to)1-12
Number of pages12
ISSN2214-8043
DOIs
Publication statusPublished - Dec 2015

Keywords

  • Belief elicitation
  • Financial literacy
  • Statistical literacy

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