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2020 | OriginalPaper | Chapter

The Impact of Financial Education and Self-Efficacy on Financial Behavior in Croatia: Are We More Similar to Homo Economicus or Homer Simpson?

Authors : Irena Palić, Dajana Barbić, Andrea Lučić

Published in: Sustainable Development and Social Responsibility—Volume 1

Publisher: Springer International Publishing

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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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Title: The Impact of Financial Education and Self-Efficacy on Financial Behavior in Croatia: Are We More Similar to Homo Economicus or Homer Simpson?
Authors: Irena Palić
Dajana Barbić
Andrea Lučić
Publisher: Springer International Publishing
Book: Sustainable Development and Social Responsibility—Volume 1
Print ISBN: 978-3-030-32921-1

Electronic ISBN: 978-3-030-32922-8

Copyright Year: 2020
DOI: https://doi.org/10.1007/978-3-030-32922-8_24

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