The effect of financial literacy on policy preferences: evidence from Argentina

Abstract

In this article, I study the role of economic knowledge in economic policy preferences. I find that this domain-specific knowledge has a direct effect on attitudes toward economic issues. Using evidence from two surveys of 7,565 of Argentines, I demonstrate that people who score higher on the financial literacy and economic knowledge tests are more supportive of pro-market economic policies, such as the elimination of trade barriers and subsidies, and integration into the global financial markets. These results are independent of partisan ties, self-interest, or personal investment in financial literacy.