Abstract
This paper tends to reveal whether individuals are more prone to behave like Homo economicus or irrational individuals led by short-run motivation. According to the traditional economic theory, individuals behave perfectly rational and make their financial decisions based on their knowledge. On the other hand, behavioral theory neglects rational behavior assumed by traditional economics. Individuals do not act in their best interest and are prone to make irrational and wrong decisions. In the behavioral economics literature, as opposed to homo economicus, the irrational behavior is represented by the character of Homer Simpson who is often unreasonable, short-run-motivated, responsibility-averse, and does not use the acquired knowledge adequately. The purpose of this paper is to investigate the impact of financial knowledge, as a result of financial education and self-efficacy, on subsequent financial behavior. Therefore, based on the results of the survey conducted among Croatian citizens, this research uses regression modeling to assess how financial knowledge and self-efficacy affect responsible financial behavior among Croatian consumers. Results of the research are valuable for proper educational policy and providing insight into motives behind the efficient financial behavior.
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This research is supported by the Croatian Science Foundation under the project STRENGTHS no. IP-2013-9402 and the University of Zagreb under 2018 research grant “Statistical modelling of the impact of financial education on consumer attitudes and behavior”.
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Palić, I., Barbić, D., Lučić, A. (2020). The Impact of Financial Education and Self-Efficacy on Financial Behavior in Croatia: Are We More Similar to Homo Economicus or Homer Simpson?. In: Mateev, M., Nightingale, J. (eds) Sustainable Development and Social Responsibility—Volume 1. Advances in Science, Technology & Innovation. Springer, Cham. https://doi.org/10.1007/978-3-030-32922-8_24
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