https://www.nilsmyszkowski.com/categories/financial-literacy/ Recent content in Financial literacy on Nils Myszkowski, PhD Hugo -- gohugo.io en Fri, 24 Jul 2026 00:00:00 +0000 https://www.nilsmyszkowski.com/publications/2026-improving-measurement-financial-literacy-non-correct-responses/ Fri, 24 Jul 2026 00:00:00 +0000 https://www.nilsmyszkowski.com/publications/2026-improving-measurement-financial-literacy-non-correct-responses/ What it’s about In this paper, we examine whether very short financial literacy tests can be improved by modeling not only whether responses are correct, but also how respondents answer when they are incorrect or uncertain. Abstract Very brief financial literacy tests are often used in large surveys, but conventional right/wrong scoring can limit their reliability and validity. Using data from the Dutch LISS panel, this study compares standard binary item-response models with models that recover information from distractors and non-substantive response options such as “don’t know” and “would rather not say.