We examine the nuanced relationship between financial inclusion and happiness, emphasizing on the mediating role of financial resilience. Using data across three domains from the Global Findex and the Household Financial and Consumption Survey we investigate the mechanisms through which access to finance affects life satisfaction at various levels. At the country level, our findings indicate that it associates with a 17.1%-21.7% increased levels of reported life satisfaction, with even higher gains (27.8%-32%) among financially vulnerable populations. At the household level, data from 17 European Union countries reveal that access to formal finance enhances life satisfaction by 9.8 to 23.3 percentage points, with credit access playing a significant role. At the individual level, data from the latest Global Findex show that access to credit reduces financial stress by 5.6 to 14 percentage points. Our results highlight that financial resilience, particularly through formal sources of emergency funds, strengthens the positive effects of financial inclusion on reducing financial stress and improving well-being. This study contributes to understanding how financial inclusion mechanisms enhance life satisfaction by examining the critical role of financial resilience.

We assess the impact of Borrower-Based Measures (BBMs) frameworks on household macroeconomic indicators across a panel of European countries from 1995 to 2021. To derive causal estimates of the Average Treatment Effect on the Treated (ATT), we employ the staggered Difference-in-Differences (DiD) estimation method proposed by Callaway and Sant’Anna (2021). Our results indicate that the introduction of BBMs is associated with a significant decline in the growth rate of house prices and house-price-to-income ratios (-7 pp), as well as a reduction in household credit growth (-5 pp). The peak of the effect occurs between 7 and 10 quarters, and reverts back around three years from introduction. We are unable to find effects on home ownership or private credit growth.

This paper investigates the investment behaviors of households in Türkiye, focusing on the impact of demographic factors such as age, gender, education. Utilizing micro data from the 2019 Household Financial Perception and Attitude Survey (HFPAS), we analyze how these factors influence investment choices, risk tolerance, and savings attitudes. The Turkish context, with its diverse population and evolving financial markets, provides a unique setting for this analysis. The analysis reveals that women, divorced and married asset owners are more likely to invest in low-risk assets compared to men, and single individuals who are more inclined towards high-risk investments, which aligns with findings that women are generally more risk-averse. Additionally, the likelihood of investing in low-risk assets increases with home ownership but declines as financial conditions worsen, while higher social and economic status boosts low-risk investment probability. Conversely, individuals with vocational school and university degrees are more inclined towards average and high risk investments, though larger household sizes tend to reduce the likelihood of investing in risky assets possibly due to the increased financial responsibilities and associated risks. Our findings offer valuable insights for policymakers, financial market participants, and academics, highlighting the importance of targeted financial education programs to enhance financial literacy and promote informed decision-making across different demographic segments.