Restoring rational choice: The challenge of consumer financial regulation

Arbeitspapier

This lecture considers the case for consumer financial regulation in an environment where many households lack the knowledge to manage their financial affairs effectively. The lecture argues that financial ignorance is pervasive and unsurprising given the complexity of modern financial products, and that it contributes meaningfully to the evolution of wealth inequality. The lecture uses a stylized model to discuss the welfare economics of paternalistic intervention in financial markets, and discusses several specific examples including asset allocation in retirement savings, fees for unsecured short-term borrowing, and reverse mortgages.

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• ISBN: 978-92-899-2034-6
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1897

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Consumer Protection ; Financial Institutions and Services: Government Policy and Regulation
• Subject: consumer protection ; financial literacy ; wealth inequality

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Campbell, John Y.
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2016

Further information

• DOI: doi:10.2866/118733
• Handle: http://hdl.handle.net/10419/154330