Does Financial Literacy Alone Lead to Good Financial Decisions?
NYU Wagner Professor Jonathan Morduch and Public Service Fellow Barbara Kiviat have written a fascinating paper on financial literacy for the McGraw-Hill Research Foundation, entitled "From Financial Literacy to Financial Action."
The paper examines how financial know-how, seen as a tool important to the success of micro-lending strategies in developing countries, can be utilized to help people "turn financial aspirations into meaningful actions" and "develop and stick to concrete financial plans."
Morduch is a professor of public policy and economics at NYU Wagner and the managing director of the Financial Access Initiative (FAI), where Kiviat offers a blog post about the full white paper. She is a David Bohnett Public Service Fellow at Wagner and a research associate at the Financial Access Initiative.
Economist's Paper Calls for New Research Agenda on Emigration
An article that Michael A. Clemen researched as a Visiting Scholar at NYU Wagner and the Department of Economics is generating a great deal of discussion. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?" focuses on the vast economic losses that result from tightly binding limitations on emigration imposed by destination countries such as the United States (where, for example, the 2010 Diversity Visa Lottery attracted 13.6 million applications for 50,000 visas, mainly from people in developing countries). When it comes to the many policies that restrict emigration, the few estimates of the economic losses to the receiving countries "should make economists' jaws hit their desks," writes Clemens, a Senior Fellow with the Center for Global Development, Washington, D.C., adding "there appears to be trillion-dollar bills on the sidewalk." Yet economists and researchers tend not to focus on what is perhaps "the greagest single class of distortions in the global economy," he notes. Clemens explores why that is so, and goes on to propose a new research agenda.