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Does Financial Literacy Impact Investment Participation and Retirement Planning in Japan?

2024-05-02 · Yi Jiang, Shohei Shimizu

By employing causal discovery method, the Fast Causal Inference (FCI) model to analyze data from the 2022 "Financial Literacy Survey," we explore the causal relationships between financial literacy and financial activities, specifically investment participation and retirement planning. Our findings indicate that increasing financial literacy may not directly boost engagement in financial investments or retirement planning in Japan, which underscores the necessity for alternative strategies to motivate financial activities among Japanese households. This research offers valuable insights for policymakers focused on improving financial well-being by advancing the use of causal discovery algorithms in understanding financial behaviors.

📄 PDF Abstract BibTeX arXiv:2405.01078

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Causal DiscoveryCausal Inference

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Causal inference Causal inference is the process of drawing a conclusion about a causal connection based on the conditions of the occurrence of an effect. The main difference between causal…

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