Financial literacy and financial crime: A regression discontinuity approach

• 成果类型: Article
• 署名作者: Freed, Paul G.; Hackney, John
• 署名单位: University of Virginia; University of Arkansas System; University of Arkansas Fayetteville
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2026.104292
• 发表日期: 2026-07
• 页码: 104292
• 关键词: Household finance; Financial crime; financial literacy; behavioral finance; pre-k; education; abilities; BEHAVIOR; shocks

摘要

This study investigates how financial literacy shapes the propensity of individuals to commit financial crime. Using state-level administrative data on criminal charges linked to comprehensive public records , we exploit a policy-based discontinuity in grade level assignment based on individual birth dates that exogenously requires certain high school cohorts to attend a financial literacy course. Our estimates suggest that exposure to the course reduces the propensity to commit financial crime by 37%. The reduction is driven by declines in embezzlement and is stronger for low-income individuals. Additional evidence suggests that the reductions are primarily explained by improvements in household balance sheets.