In Equations We Trust? Formula Knowledge Effects on the Exponential Growth Bias in Household Finance Decisions

References

• Almenberg J, Gerdes C (2012) Exponential growth bias and financial literacy. Appl. Econom. Lett. 19(17):1693–1696.Crossref, Google Scholar
• Benzion U, Granot A, Yagil J (1992) The valuations of the exponential function and implications for derived interest rates. Econom. Lett. 38(3):299–303.Crossref, Google Scholar
• Eisenstein E, Hoch S (2007) Intuitive compounding: Framing, temporal perspective, and expertise. Working paper, Temple University, Philadelphia.Google Scholar
• Fernandes D, Lynch JG, Netemeyer RG (2014) Financial literacy, financial education, and downstream financial behaviors. Management Sci. 60(7):1861–1883.Link, Google Scholar
• Foltice B (2016) How to decrease the amortization bias: Experience vs. rules. Working paper, Butler University, Indianapolis.Google Scholar
• Foltice B, Langer T (2016) Exponential growth bias matters: Evidence and implications for financial decision making of college students in the U.S.A. Working paper.Google Scholar
• Freudenthal H (1983) Didactical Phenomenology of Mathematical Structures (Riedel Publishing, Dordrecht, Netherlands).Google Scholar
• Goda GS, Manchester CF, Sojourner A (2014) What will my account be worth? Experimental evidence on how retirement income projections affect savings. J. Public Econom. 119(November):80–92.Crossref, Google Scholar
• Keren G (1983) Cultural differences in the misperception of exponential growth. Perception Psychophysics 34(3):289–293.Crossref, Google Scholar
• Levy MR, Tasoff J (2015) Exponential-growth bias and lifecycle consumption. J. Eur. Econom. Assoc. 14(3):545–583.Crossref, Google Scholar
• Lusardi A (2011) American’s financial capability. Working Paper 17103, National Bureau of Economic Research, Cambridge, MA.Crossref, Google Scholar
• Lusardi A, Tufano P (2009) Debt literacy, financial experiences, and overindebtedness. Working Paper 14808, National Bureau of Economic Research, Cambridge, MA.Crossref, Google Scholar
• MacKinnon AJ, Wearing AJ (1991) Feedback and the forecasting of exponential change. Acta Psychologica 76(2):177–191.Crossref, Google Scholar
• McKenzie CR, Liersch MJ (2011) Misunderstanding savings growth: Implications for retirement savings behavior. J. Marketing Res. 48(November):S1–S13.Crossref, Google Scholar
• Soll JB, Keeney RL, Larrick RP (2013) Consumer misunderstanding of credit card use, payments, and debt: Causes and solutions. J. Public Policy Marketing 32(1):66–81.Crossref, Google Scholar
• Song C (2015) Financial illiteracy and pension contributions: A field experiment on compound interest in China. Working paper, National University of Singapore, Singapore.Google Scholar
• Stango V, Zinman J (2009) Exponential growth bias and household finance. J. Finance 64(6):2807–2849.Crossref, Google Scholar
• Van Dooren W, De Bock D, Hessels A, Janssens D, Verschaffel L (2004) Learning Instruction 14(5):485–501.Crossref, Google Scholar
• Wagenaar WA, Sagaria SD (1975) Misperception of exponential growth. Perception Psychophysics 18(6):416–422.Crossref, Google Scholar
• Wagenaar WA, Timmers H (1979) The pond and duckweed problem: Three experiments on the misperception of exponential growth. Acta Psychologica 43(3):239–251.Crossref, Google Scholar
• Way WL, Holden KC (2009) 2009 Outstanding AFCPE Conference Paper—Teachers’ background and capacity to teach personal finance: Results of a national study. J. Financial Counseling Planning Volume 20(2):64–78.Google Scholar