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Ronald P. Volpe

Bio: Ronald P. Volpe is an academic researcher from College of Business Administration. The author has contributed to research in topics: Financial literacy & Financial services. The author has an hindex of 4, co-authored 5 publications receiving 1569 citations.

Papers
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Journal ArticleDOI
TL;DR: In this paper, the authors surveyed 924 college students to examine their personal financial literacy; the relationship between the literacy and students' characteristics; and impact of the literacy on students' opinions and decisions; and concluded that less knowledgeable students tend to hold wrong opinions and make incorrect decisions.

1,136 citations

Journal Article
TL;DR: This article found that women generally have less enthusiasm for, lower confidence in, and less willingness to learn about personal finance topics than men do, while men rate English and humanity courses more important.

475 citations

Journal Article
TL;DR: Chen et al. as discussed by the authors found that the participants rate retirement planning and personal finance basics as two important topics where there are deficiencies in employees' knowledge and also observed deficiencies in other areas such as investments and estate planning.

100 citations

01 Jan 2002
TL;DR: Chen et al. as discussed by the authors presented an analysis of the Cotsakos-Chen-Cotakos model for finance at William Paterson University in New Jersey.
Abstract: State University, Youngstown, Ohio 44555. Phone: 330-742-3084. Fax: 330-742-1459. E-mail: ronvolpe@attbi.com . Joseph E. Kotel, Staff Accountant, Falcon Transport, Youngstown, Ohio 44501. E-mail: j_kotel@hotmail.com. . Haiyang Chen, Professor of Finance, Director of E*TRADE Financial Learning Center, Christos M. Cotsakos College of Business, William Paterson University, Wayne, New Jersey 07470. E-mail: chenh@wpunj.edu

76 citations

01 Jan 2010
TL;DR: In this paper, consumer financial literacy plays an important role in the efficient allocation of economic resources for productive use in a dynamic economy and consumer financial education can provide borrowers with tools to protect themselves from lending practices that can bring financial harm.
Abstract: Consumer financial literacy plays an important role in the efficient allocation of economic resources for productive use in a dynamic economy. Subprime lending has increased the number of individuals who own homes and provided them with the opportunity to improve their standard of living. An array of new financial products, a low interest rate environment, changes in federal laws, the expectation of continued increases in real estate prices and mortgage securitization were catalysts to the explosive growth in subprime lending. However, a low level of consumer financial literacy and the abandonment of sound lending practices made individuals vulnerable to financial decisions that were not in their best interests. For many, the dream of home ownership has been downsized, abandoned or ended in foreclosure. A working knowledge of basic financial concepts would help consumers to better understand the consequences of their financial actions and make more informed financial decisions. Consumer financial education can provide borrowers with tools to protect themselves from lending practices that can bring financial harm.

3 citations


Cited by
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Journal ArticleDOI
TL;DR: An assessment of a rapidly growing body of economic research on financial literacy and thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy are offered.
Abstract: This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare as well as policies intended to enhance levels of financial knowledge in the larger population. Next, we draw on recent surveys to establish how much (or how little) people know and identify the least financially savvy population subgroups. This is followed by an examination of the impact of financial literacy on economic decision-making in the United States and elsewhere. While the literature is still young, conclusions may be drawn about the effects and consequences of financial illiteracy and what works to remedy these gaps. A final section offers thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy.

2,176 citations

Journal ArticleDOI
TL;DR: In this paper, the authors present an assessment of a rapidly growing body of economic research on financial literacy and examine the impact of financial literacy on economic decision-making in the United States and elsewhere.
Abstract: This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research, which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare, as well as policies intended to enhance levels of financial knowledge in the larger population. Next, we draw on recent surveys to establish how much (or how little) people know and identify the least financially savvy population subgroups. This is followed by an examination of the impact of financial literacy on economic decision making in the United States and elsewhere. While the literature is still young, conclusions may be drawn about the effects and consequences of financial illiteracy and what works to remedy these gaps. A final section offers thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy. (JEL A20, D14, G11, I20, J26)

1,741 citations

Journal ArticleDOI
TL;DR: An overview of the meaning and measurement of financial literacy is presented to highlight current limitations and assist researchers in establishing standardized, commonly accepted financial literacy instruments as mentioned in this paper, which is essential to understand educational impact as well as barriers to effective financial choice.
Abstract: Financial literacy (or financial knowledge) is typically an input to model the need for financial education and explain variation in financial outcomes. Defining and appropriately measuring financial literacy is essential to understand educational impact as well as barriers to effective financial choice. This article summarizes the broad range of financial literacy measures used in research over the last decade. An overview of the meaning and measurement of financial literacy is presented to highlight current limitations and assist researchers in establishing standardized, commonly accepted financial literacy instruments.

1,164 citations

Journal ArticleDOI
TL;DR: Gneezy et al. as discussed by the authors conducted a meta-analysis of the relationship of financial literacy and of financial education to financial behaviors in 168 papers covering 201 prior studies, and found that interventions to improve financial literacy explain only 0.1% of the variance in financial behaviors studied, with weaker effects in low-income samples.
Abstract: Policy makers have embraced financial education as a necessary antidote to the increasing complexity of consumers' financial decisions over the last generation. We conduct a meta-analysis of the relationship of financial literacy and of financial education to financial behaviors in 168 papers covering 201 prior studies. We find that interventions to improve financial literacy explain only 0.1% of the variance in financial behaviors studied, with weaker effects in low-income samples. Like other education, financial education decays over time; even large interventions with many hours of instruction have negligible effects on behavior 20 months or more from the time of intervention. Correlational studies that measure financial literacy find stronger associations with financial behaviors. We conduct three empirical studies, and we find that the partial effects of financial literacy diminish dramatically when one controls for psychological traits that have been omitted in prior research or when one uses an instrument for financial literacy to control for omitted variables. Financial education as studied to date has serious limitations that have been masked by the apparently larger effects in correlational studies. We envisage a reduced role for financial education that is not elaborated or acted upon soon afterward. We suggest a real but narrower role for “just-in-time” financial education tied to specific behaviors it intends to help. We conclude with a discussion of the characteristics of behaviors that might affect the policy maker's mix of financial education, choice architecture, and regulation as tools to help consumer financial behavior. This paper was accepted by Uri Gneezy, behavioral economics.

948 citations

Journal ArticleDOI
TL;DR: An overview of the meaning and measurement of financial literacy is presented to highlight current limitations and assist researchers in establishing standardized, commonly accepted financial literacy instruments as mentioned in this paper, which is essential to understand educational impact as well as barriers to effective financial choice.
Abstract: Financial literacy (or financial knowledge) is typically an input to model the need for financial education and explain variation in financial outcomes. Defining and appropriately measuring financial literacy is essential to understand educational impact as well as barriers to effective financial choice. This article summarizes the broad range of financial literacy measures used in research over the last decade. An overview of the meaning and measurement of financial literacy is presented to highlight current limitations and assist researchers in establishing standardized, commonly accepted financial literacy instruments.

948 citations