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Who's in? Household-targeted Government Policies and the Role of Financial Literacy in Market Participation
Maria Elena Filippin
https://arxiv.org/abs/2506.12575

Who's in? Household-targeted Government Policies and the Role of Financial Literacy in Market Participation
This paper examines how household-targeted government policies influence financial market participation conditional on financial literacy, focusing on potential Central Bank Digital Currency (CBDC) adoption. Due to the lack of empirical CBDC data, I use the introduction of retail Treasury bonds in Italy as a proxy to investigate how financial literacy affects households' likelihood to engage with the new instrument. Using the Bank of Italy's Survey on Household Income and Wealth, I explore how …