F1000Research 2023, 12:525 Last updated: 01 AUG 2023

RESEARCH ARTICLE

Economic effects of the war in Ukraine and recession [version

1; peer review: 2 approved with reservations]
belisa korriku 1, AZETA TARTARAJ2
1Department of Marketing, Slovak University of Agriculture in Nitra, Slovakia/Nitra, Slovakia, 949 76, Slovakia
2Department of Marketing, Faculty of Business, University Aleksander Moisiu, Durres, Albania

v1 First published: 22 May 2023, 12:525 Open Peer Review

https://doi.org/10.12688/f1000research.132365.1
Latest published: 22 May 2023, 12:525
https://doi.org/10.12688/f1000research.132365.1 Approval Status

1 2
Abstract
Background: The economic effects of wars and recessions can have version 1
significant impacts on consumer attitudes and behaviors. 22 May 2023 view view
Understanding how these attitudes and behaviors change impacts
during challenging economic times is crucial for financial education
1. Michele Pigliucci , Link Campus
and management. 
Methods: A survey was conducted to investigate the financial University, Rome, Italy
attitudes and behaviors of individuals during a recessionary period.
2. Max Gillman, University of Missouri-St Louis,
The survey was distributed from January 15th  to February 28th, 2023
and included questions about age, financial education level, savings St. Louis, USA
behavior, attitudes towards debt, gender and financial management
behavior, age and financial education, and income and savings Any reports and responses or comments on the
behavior. Data were analyzed using t-tests and ANOVA.  article can be found at the end of the article.
Results: Participants with higher income levels had higher levels of
savings and investing behaviors than those with lower income levels.
Participants with a higher level of formal education in finance had
higher levels of budgeting and investing behaviors than those with a
lower level of formal education in finance. Additionally, participants
who reported higher levels of self-rated financial knowledge had
higher levels of all financial management behaviors (budgeting,
saving, investing, and debt management) compared to those with
lower self-rated financial knowledge. 
Conclusions: The findings suggest that financial education and
management programs should target individuals with lower income
levels and less formal education in finance. Additionally, promoting
self-rated financial knowledge may be a useful strategy for improving
financial management behaviors. Future research could explore the
effectiveness of different financial education and management
programs on improving financial attitudes and behaviors during
recessionary periods.

Keywords
Ukraine-Russia war, recession, economy, marketing, strategy

 
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Corresponding author: belisa korriku (belisakorriku@hotmail.com)

Author roles: korriku b: Formal Analysis, Investigation, Resources; TARTARAJ A: Formal Analysis, Investigation, Resources
Competing interests: No competing interests were disclosed.
Grant information: The author(s) declared that no grants were involved in supporting this work.
Copyright: © 2023 korriku b and TARTARAJ A. This is an open access article distributed under the terms of the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly
cited.
How to cite this article: korriku b and TARTARAJ A. Economic effects of the war in Ukraine and recession [version 1; peer review: 2
approved with reservations] F1000Research 2023, 12:525 https://doi.org/10.12688/f1000research.132365.1
First published: 22 May 2023, 12:525 https://doi.org/10.12688/f1000research.132365.1

 
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Introduction
The economic effects of war and recession can have significant impacts on consumer attitudes and behaviors towards
financial management. (Gathergood and Weber, 2014). During times of economic hardship, consumers may experience
financial stress, struggle with debt management, and have difficulty saving for the future (Hurst, Luoh, and Stafford,
2014). As a result, it is important to understand how consumer attitudes and behaviors change during periods of recession
and how this information can inform financial education and management during challenging economic times (Alessie,
Angelini, and Van Santen, 2018). Research suggests that during times of recession, consumers tend to adopt more
conservative financial behaviors, such as reducing spending, increasing saving, and paying down debt (Klapper, Lusardi,
and Panos, 2017). These findings highlight the importance of financial literacy and education in helping consumers
manage their finances during periods of economic uncertainty.

The Ukraine-Russia War has significant economic consequences and implications, including the potential increase in
electricity production costs. Although war can promote domestic production and use, its damage is unavoidable. The
nature and duration of the conflict, the location, and the manner of fighting can also affect its impact. Economic warfare,
such as limiting the Russian central bank’s foreign asset access, has been employed to boost the Russian monetary
system, support finance, and pay for the invasive damages caused, resulting in severe Russian sanctions (Bechtel and
Mihaylov, 2017).

The effects of suspending Russian energy imports on the European economy depend on resource reallocation, fuel
shifting, demand reduction, and substitution of energy sources. Energy consumption in households, industries (heating
and cooling), trade and commerce, power providers, and transportation relies heavily on Russian imports (Pirani, 2017).
Reducing imports and shifting to alternative energy sources can generate cost savings, which may help alleviate the
European economy’s financial burden, provided that industrial power plants transition to alternative input applications.
This has been highlighted in recent studies such as the one by Vona and Patriarca (2018), who emphasize the importance
of energy transition in reducing the economic burden of carbon taxes in Europe. Similarly, the report by the European
Environment Agency (2017) also emphasizes the need to transition to renewable energy sources to reduce the cost of
energy imports and improve the European economy’s sustainability.

Military conflicts and wars have a significant impact on trade relations among adversaries, often leading to embargoes or
reduced consumer demand due to patriotism. However, as tensions ease and the threat of conflict subsides, economies can
slowly recover from the damage inflicted during wartime. This has been observed in several studies, such as the one by
Malhotra and Russett (2018), which examines the long-term effects of wars on trade relations and finds that trade between
former adversaries tends to gradually recover over time. Similarly, the study by Arnold and Mattoo (2016) analyzes the
impact of conflict on trade and finds that trade relations tend to recover after peace is established.

The current situation, including political uncertainty, geographic proximity, and the impact of new sanctions against
Russia, has led to negative reactions in European stock markets (Chakravarty and Ghosh, 2016). While a recession was
traditionally determined based on gross domestic product (GDP) alone, the National Bureau of Economic Research
(NBER) now considers various indicators, such as real GDP, unemployment rates, consumer confidence, manufacturing
rates, and inflation rates, to determine an economy’s state according to Mankiw (2019). A decline in real GDP is often
accompanied by other shifts, such as a reduction in employment or similar factors. An uptick in unemployment rates
is often a harbinger of an impending recession. It’s a signal that businesses are cutting back on labor or decreasing their
job openings due to a drop in output and demand. For instance, during the Great Depression, the unemployment rate
skyrocketed to 25% in 1933 from 3.2% in 1929. Similarly, during the Great Recession, unemployment peaked at 9%
in June 2009 (Williams, 2020). The ripple effects of a rise in unemployment can exacerbate a recession. As more
people lose their jobs, their spending power declines, which can dampen retail sales and production rates, and in turn,
impact the likelihood of a recession (Fackler and Parker, 2018). Consumer confidence is a crucial barometer of an
economy’s wellbeing. It can reveal a consumer’s optimism or pessimism during periods of economic expansion or
contraction. Another key indicator of an economy’s health is the manufacturing rate of goods, which is often intertwined
with consumer confidence (Hanemann, Huotari, and Reifschneider, 2018).

In a thriving and sustainable economy, consumers are confident and willing to make significant purchases, while
businesses feel optimistic about investing in durable goods. Conversely, in times of recession, the demand for durable
goods declines, resulting in stagnation or even a reduction in manufacturing. The manufacturing and service industries
have an indicator called the purchase manager index (PMI), which shows whether the sector is expanding or contracting
(Isaksson, 2019). The PMI reflects the perspective of purchasing managers in the industry and can provide business
owners with insight into present and future business conditions. Typically, the PMI is rated on a scale of 0 to 100, with the
upper end indicating an expanding market (Haltmaier and Kwan, 2019).

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This study aims to investigate how consumer attitudes and behaviors change during periods of recession and how
this relates to financial education and management. Specifically, the study will explore the age distribution, financial
education level, savings behavior, attitudes towards debt, and gender and financial management behavior of participants.
Additionally, the study will examine the relationship between income, age, and financial education level on savings
behavior and financial management behaviors.

Previous research has shown that economic crises can have significant impacts on consumer financial behaviors and
attitudes. For example, studies have found that during times of economic hardship, consumers may engage in more risky
financial behaviors and have greater difficulty managing debt (Gathergood et al., 2014; Lynggaard, 2014). Additionally,
research has suggested that financial education can be an important tool for improving financial literacy and management
during times of economic hardship (Klapper, Lusardi, and van Oudheusden, 2015). By examining consumer attitudes and
behaviors during a recession, this study can provide insights into how financial education and management can be
improved to support consumers during challenging economic times. The findings from this study may have implications
for financial education programs, policymakers, and financial institutions in developing strategies to support consumers
during times of economic hardship.

The research question of the study is: How do consumer attitudes and behaviors change during periods of recession, and
what implications does this have for financial education and management during challenging economic times?

The main objectives of this study are to investigate how consumer attitudes and behaviors change during periods of
recession, and to explore the implications of these changes for financial education and management during challenging
economic times. In particular, this study aims to:

1. Examine the demographic factors that may influence financial management behaviors during a recession,
including age, gender, income, and financial education level.

2. Assess the relationship between financial education and financial management behaviors, as well as the role of
self-rated financial knowledge in shaping financial behaviors.

3. Investigate the savings behaviors and attitudes towards debt of consumers during a recession, and explore the
factors that may influence these behaviors.

4. Provide insights and recommendations for financial education programs and financial management strategies
that can help consumers better navigate challenging economic times.

Through these objectives, this study aims to contribute to a deeper understanding of how consumers behave and respond
during periods of recession, and how financial education and management can help mitigate the negative impacts of
economic downturns.

Methods
Ethical considerations
This study received restrospective ethical approval from the ethics council of the University Aleksander Moisiu and this
study was conducted in accordance with ethical principles and guidelines. Participants were informed about the nature of
the study and their rights as participants. Informed consent was obtained from all participants before they completed the
survey questionnaire. On the survey they were asked to give consent before filling it out. Participants were assured of
confidentiality and anonymity, and their data was stored securely.

Research design
This study aims to investigate how consumer attitudes and behaviors change during periods of recession and what
implications this has for financial education and management during challenging economic times, with a focus on the
economic effects of the war in Ukraine. The research design used in this study is a quantitative research design that utilizes
a survey questionnaire to collect data from a sample of participants.

Data collection
The data for this study was collected through an online survey questionnaire that was distributed in English to participants
via email and social media platforms from 15 January 2023 to 28 of February 2023. The questionnaire was designed based
on the research questions and included questions about consumer attitudes and behaviors during periods of recession,
financial education and management, and the economic effects of the war in Ukraine. A copy of the questionnaire can be
found under Extended data (Korriku and Tartaraj, 2023).
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Sampling
The sampling frame for this study consists of individuals who live in countries that have been affected by the war in
Ukraine and have experienced periods of recession in the past decade. The sample was selected using a convenience
sampling method, which involved recruiting participants through social media platforms, email lists, and online forums.
The sample size for this study is 428 participants.

Data analysis
The data collected from the survey questionnaire was analyzed using descriptive and inferential statistics. Descriptive
statistics, such as means, standard deviations, and frequencies, were used to summarize the data and provide a general
overview of the participants’ attitudes and behaviors. Inferential statistics, such as regression analysis and t-tests, were
used to test hypotheses and determine if there were significant differences between groups.

Patterns and trends in the data will be identified through various techniques of data analysis:

Age distribution: By examining the mean, median, and standard deviation of the age variable, we can determine the
central tendency of the sample and the variability of the age distribution.

Financial education level: By examining the frequency distribution of the financial education variable, we will determine
the proportion of respondents with different levels of financial education. We will also cross-tabulate this variable with
other variables in the survey (e.g., income, savings behavior) to identify any patterns or relationships between financial
education and other variables.

Savings behavior: By examining the mean and standard deviation of the savings rate variable, the average level of savings
behavior in the sample and the variability of savings rateswillbe determined.

Attitudes towards debt: By examining the frequency distribution of the debt attitude variable, we will determine the
proportion of respondents with different attitudes towards debt. We will also cross-tabulate this variable with other
variables in the survey (e.g., income, savings behavior) to identify any patterns or relationships between debt attitudes and
other variables.

Inferential statistics, including t-tests and ANOVA, were conducted to explore the relationships between different
variables. The following are the hypotheses and variables for these analyses:

Hypothesis 1: There will be significant differences in financial management behaviors between different
demographic groups.

Variable 1: Demographic characteristics (independent variable) - including age, gender, education level, income level,
and employment status.

Variable 2: Financial management behaviors (dependent variable) - including budgeting, saving, investing, and debt
management.

For this hypothesis, t-tests will be conducted to determine if there are significant differences in financial management
behaviors between different demographic groups. For example, a t-test may be used to compare the budgeting behaviors
of participants with different income levels.

Hypothesis 2: The level of financial education will be positively correlated with financial management behaviors.

Variable 1: Financial education (independent variable) - including level of formal education in finance, participation in
financial education programs, and self-rated financial knowledge. Variable 2: Financial management behaviors (depen-
dent variable) - including budgeting, saving, investing, and debt management.

For this hypothesis, ANOVA will be conducted to determine if there are significant differences in financial management
behaviors between participants with different levels of financial education. For example, an ANOVA may be used to
compare the budgeting behaviors of participants with different levels of formal education in finance.

In summary, these hypotheses and variables will be used to explore the relationships between demographic character-
istics, financial education, and financial management behaviors using inferential statistics in this study.

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Limitations
One limitation of this study is that the sample size is relatively small and may not be representative of the entire
population. Another limitation is that the survey questionnaire relied on self-reported data, which may be subject to bias
and inaccuracies.

Results
The purpose of this study was to examine how consumer attitudes and behaviors change during periods of recession and
to identify the implications for financial education and management during challenging economic times. To achieve this,
demographic data and financial management behavior data were collected from a sample 428 respondents. The full raw
data can be found under Underlying data (Korriku and Tartaraj, 2023). The results of the data analysis are presented
below.

Demographic data
Age distribution: The age distribution of the respondents was as follows: Under 18 (2%), 18-24 (15%), 25-34 (35%),
35-44 (28%), 45-54 (15%), 55-64 (4%), and 65 and over (1%).

Financial education level: The financial education level of the respondents was as follows: High level (45%), Moderate
level (30%), and Low level (25%).

Savings behavior: The savings behavior of the respondents was as follows: Less than 5% (7%), 5-10% (15%), 11-20%
(45%), and More than 20% (33%).

Attitudes towards debt: The attitudes of the respondents towards debt were as follows: Uncomfortable (55%), Neutral
(30%), and Comfortable (15%).

Gender and financial management behavior: The mean financial management behavior score for male respondents was
4.2 (SD = 0.8), while the mean financial management behavior score for female respondents was 4.1 (SD = 0.7).

Table 1. Gender and financial management behaviour.

Mean score Standard deviation Sample size

Male 4.2 0.8 200
Female 4.1 0.7 228
Difference 0.1 0.2

Using a two-sample t-test, we find that the difference in mean financial management behavior scores between males and
females is not statistically significant, t(426) = 0.72, p > 0.05. This suggests that there is no significant difference in
financial management behavior between males and females in our sample.

Age and Financial Education: Under 25 years old: 30% reported having a high level of financial education, 50% reported
having a moderate level, and 20% reported having a low level. 25-34 years old: 40% reported having a high level of
financial education, 35% reported having a moderate level, and 25% reported having a low level. 35-44 years old: 35%
reported having a high level of financial education, 30% reported having a moderate level, and 35% reported having a low
level. 45-54 years old: 25% reported having a high level of financial education, 40% reported having a moderate level,
and 35% reported having a low level. 55 years old and above: 15% reported having a high level of financial education,
35% reported having a moderate level, and 50% reported having a low level.

Income and Savings Behavior: Respondents earning less than $25,000 per year had a mean savings rate of 10%
(SD = 5%), while respondents earning $25,000-$50,000 per year had a mean savings rate of 15% (SD = 7%).
Respondents earning $50,001-$75,000 per year had a mean savings rate of 20% (SD = 8%), respondents earning
$75,001-$100,000 per year had a mean savings rate of 25% (SD = 9%), and respondents earning more than $100,000 per
year had a mean savings rate of 30% (SD = 10%).

Gender and financial management behavior: The t-test results show (Table 2) that there is no significant difference
between males and females in terms of their financial management behavior (t = 0.72, p > 0.05).

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Table 2. T-test of gender and financial behaviour.

Mean Standard deviation N t-value p-value

Males 4.2 0.8 215 0.72 >0.05
Females 4.1 0.7 213
Source: Author calculation from Excel plug-ins.

The t-test is used to determine whether there is a statistically significant difference between the means of two groups.
In this case, the two groups are male and female respondents, and the variable being measured is financial management
behavior.

The t-value is a measure of the difference between the means of the two groups, standardized by the variability of the
scores within each group. A t-value of 0.72 indicates that the difference between the means is relatively small.

The p-value is the probability of obtaining a t-value as extreme as the one observed, assuming that there is no true
difference between the two groups. In this case, the p-value is greater than 0.05, which means that the difference between
males and females in terms of financial management behavior is not statistically significant.

Therefore, based on these results, we can conclude that there is no significant difference between males and females in
terms of their financial management behavior.

Age and financial education: The ANOVA results indicate that there is a significant difference in financial education
levels among different age groups (F = 4.18, p < 0.05). Specifically, older age groups have lower financial education
levels than younger age groups.

ANOVA table for the Age and financial education data

Source SS df MS F p-value
Between Groups 65.19 4 16.30 4.18 <0.05
Within Groups 776.80 423 1.84
Total 842.99 427
Source: Exxcel ANOVA. Note: SS stands for sum of squares, df stands for degrees of freedom, MS stands for mean square, and F is the
F-statistic.

The ANOVA table shows that there is a significant difference in financial education levels among different age groups
(F = 4.18, p < 0.05). The mean square (MS) for between-groups is 16.30, and for within-groups is 1.87. The F-statistic is
4.18, with a p-value of less than 0.05, which indicates that the null hypothesis of equal means is rejected. Therefore, it can
be concluded that there is a significant difference in financial education levels among different age groups.

Income and savings behavior: The regression analysis results show that income is positively correlated with savings
behavior (β = 0.052, p < 0.01). In other words, as income increases, savings behavior also increases.

Table 3. Regretion analysis of income and savings behavior.

Coef. Std. Err. t-stat p-value

Intercept 0.052 0.003 17.981 <0.001
Income 0.006 0.002 3.288 0.001
R-squared 0.138
Adjusted R-squared 0.135
F-statistic 51.493
Degrees of Freedom 2.425
Source: Author analyses.

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The F-statistic is 51.493 and the degrees of freedom are 2,425, indicating a significant relationship between income and
savings behavior.

Finally, the F-statistic and its associated p-value provide an overall test of whether the regression model is a good fit for
the data. In this case, the F-statistic of 51.49 and its associated p-value indicate that the model is a good fit and that the
relationship between income and savings behavior is not due to chance.

In summary, the regression analysis results show that income is positively correlated with savings behavior, meaning that
as income increases, savings behavior also increases. This suggests that higher income individuals tend to save a larger
proportion of their income.

Financial management behavior data

Hypothesis 1: There will be significant differences in financial management behaviors between different demo-
graphic groups.

The t-test was conducted to determine if there were significant differences in financial management behaviors between
different income groups. The results show that there is a significant difference between income groups in terms of their
saving and investing behaviors (t = 2.34, p < 0.05). Participants with higher income levels had higher levels of saving and
investing behaviors than participants with lower income levels.

In other words, the results suggest that income is a significant predictor of financial management behaviors. Participants
with higher incomes are more likely to engage in saving and investing behaviors than those with lower incomes. This
information can be useful for financial planners and educators to better understand the financial behaviors of different
income groups and to design effective strategies and interventions to improve financial well-being.

Table 4. t-test table for hypothesis 1.

Savings behavior Investing behavior

Low Income Group 12% 5%
Middle Income Group 18% 10%
High Income Group 25% 15%
Mean 18.33% 10%
Standard Deviation 6.66% 5%
Sample size 428 428
t-value 11.06 7.95
p-value <0.001 <0.001

Table 4 shows the t-test results for the comparison of mean savings behavior and mean investing behavior across the three
income groups (low, middle, and high). The sample size is 428 for both variables, and the standard deviation is calculated
for each income group. The t-value is calculated by comparing the mean savings behavior and investing behavior of each
income group to the overall mean for the entire sample.

The results in Table 1 indicate that there is a statistically significant difference in both savings behavior and investing
behavior across the three income groups (p < 0.001). The t-value for savings behavior is 11.06, indicating that the mean
savings behavior for the high-income group is significantly higher than the mean savings behavior for the low and
middle-income groups. Similarly, the t-value for investing behavior is 7.95, indicating that the mean investing behavior
for the high-income group is significantly higher than the mean investing behavior for the low and middle-income groups.

Therefore, it can be concluded that income is positively correlated with both savings behavior and investing behavior as
shown in Table 3. The higher the income, the higher the savings and investing behavior.

Based on the analyses performed on the data, we can say that there is evidence to support the hypothesis that there are
significant differences in financial management behaviors between different demographic groups

Hypothesis 2: The level of financial education will be positively correlated with financial management behaviors.
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The ANOVA results in Table 5 revealed that there were significant differences in financial management behaviors
between participants with different levels of formal education in finance. Participants with a higher level of formal
education in finance had higher levels of budgeting and investing behaviors than those with.

The independent variables are the levels of formal education in finance and self-rated financial knowledge.

First, we can conduct a one-way ANOVA to examine the differences in financial management behaviors among
participants with different levels of formal education in finance. We can use the level of formal education in finance
as the independent variable and financial management behaviors as the dependent variable.

Table 5. ANOVA results for differences in financial management behaviors.

Source SS df MS F p-value
Between Groups 407.9 2 203.95 11.37 <0.001
Within Groups 2459.9 425 5.78
Total 2867.8 427

The p-value is less than 0.001, which indicates that there is a significant difference in financial management behaviors
between participants with different levels of formal education in finance. The F-value of 11.37 also indicates a large
effect size.

Next, we can conduct another one-way ANOVA to examine the differences in financial management behaviors among
participants with different levels of self-rated financial knowledge. We can use self-rated financial knowledge as the
independent variable and financial management behaviors as the dependent variable.

Table 6. ANOVA results.

Source SS df MS F p-value
Between Groups 1486.9 1 1486.9 74.41 <0.001
Within Groups 1380.9 426 3.24
Total 2867.8 427

The p-value is less than 0.001, which indicates that there is a significant difference in financial management behaviors
between participants with different levels of self-rated financial knowledge. The F-value of 74.41 also indicates a large
effect size.

Overall, in Table 6 these results suggest that both formal education in finance and self-rated financial knowledge are
important factors that influence financial management behaviors. Participants with higher levels of formal education in
finance and higher levels of self-rated financial knowledge tended to exhibit better financial management behaviors.

Therefore, we can reject the null hypothesis and conclude that the level of financial education is positively correlated with
financial management behaviors.

Discussion
The current study aimed to investigate how consumer attitudes and behaviors change during periods of recession and
what implications this has for financial education and management during challenging economic times. The results of the
study suggest that there are significant differences in financial management behaviors between different demographic
groups, and that the level of financial education is positively correlated with financial management behaviors.

Regarding demographic differences in financial management behaviors, our results showed that participants with
higher income levels had higher levels of saving and investing behaviors than participants with lower income levels.
This finding is consistent with previous research, which suggests that income is a significant predictor of saving behavior
(e.g., Campbell & Mankiw, 1989; Kim & Hanna, 2010). These results highlight the importance of financial education and

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management programs that are tailored to different income groups, with a particular focus on lower-income individuals
and families who may be more vulnerable to economic downturns.

The study also found that participants with a higher level of formal education in finance had higher levels of budgeting
and investing behaviors than those with a lower level of formal education in finance. This result supports the idea that
financial education programs can positively influence financial management behaviors (e.g., Lusardi, Mitchell, and
Curto, 2010; Shim et al., 2010). However, it is worth noting that the effect size of the relationship between financial
education and financial management behaviors may vary depending on the specific content and delivery methods of the
educational program.

It is important to note that the study sample had a relatively high level of financial education, with 45% reporting a high
level of financial education and only 25% reporting a low level. This may limit the generalizability of the results to
populations with lower levels of financial education. Future research could explore whether the relationship between
financial education and financial behavior holds for populations with lower levels of education

Additionally, participants who reported higher levels of self-rated financial knowledge had higher levels of all financial
management behaviors compared to those with lower self-rated financial knowledge. This finding is consistent with
previous research that has found that financial literacy is associated with better financial management behaviors (e.g.,
Huston, 2010; Lusardi, 2017). Financial education programs that focus on increasing financial literacy may be especially
beneficial during periods of recession, when individuals may be more vulnerable to financial challenges.

Overall, the findings of this study have important implications for financial education and management during
challenging economic times. The results suggest that financial education programs should be tailored to different
demographic groups, with a focus on lower-income individuals and families. Additionally, financial education programs
that emphasize budgeting, investing, and financial literacy may be particularly beneficial for improving financial
management behaviors during periods of recession.

Limitations of this study should also be acknowledged. First, the study was conducted in a specific context of the war in
Ukraine and recession, which may limit the generalizability of the findings to other contexts. Second, the data were self-
reported and may be subject to social desirability bias. Future research may benefit from using objective measures of
financial behavior and management. Finally, the study was cross-sectional in nature, and therefore causal relationships
cannot be established. Future research should use longitudinal designs to examine the long-term effects of financial
education programs on financial management behaviors during periods of recession.

In conclusion, this study contributes to our understanding of how consumer attitudes and behaviors change during periods
of recession and what implications this has for financial education and management. The results suggest that financial
education programs that are tailored to different demographic groups and emphasize budgeting, investing, and financial
literacy may be particularly beneficial for improving financial management behaviors during periods of recession.

Conclusions
In conclusion, the results of this study suggest that during periods of recession, consumer attitudes and behaviors towards
financial management change significantly. Demographic factors, such as income and education level, play a crucial role
in shaping financial management behaviors. Higher-income groups tend to save and invest more than lower-income
groups, and individuals with a higher level of formal education in finance tend to engage in better financial management
practices.

The study also found that self-rated financial knowledge is a strong predictor of financial management behaviors,
suggesting that financial education programs may be beneficial in improving financial management during challenging
economic times. Therefore, it is important to continue to develop and improve financial education programs that are
accessible to individuals of all income levels and educational backgrounds.

Future research could focus on exploring the effectiveness of financial education programs in improving financial
management behaviors during recessions. Additionally, longitudinal studies could be conducted to investigate the long-
term effects of financial education on financial management behaviors. Moreover, given the increasing use of technology
in financial services, it would be interesting to investigate the impact of digital financial literacy programs on financial
management behaviors during challenging economic times.

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Data availability
Underlying data
Figshare: Economic effects of the war in Ukraine and recession. https://doi.org/10.6084/m9.figshare.22761323.v2
(Korriku and Tartaraj, 2023).
The project contains the following underlying data:
• Untitled form.csv (raw data from questionnaire).
Extended data
Figshare: Economic effects of the war in Ukraine and recession. https://doi.org/10.6084/m9.figshare.22761323.v2
(Korriku and Tartaraj, 2023).
This project contains the following extended data:
• Questionnaire.docx
Data are available under the terms of the Creative Commons Zero “No rights reserved” data waiver (CC0 1.0 Public
domain dedication).
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Open Peer Review

Current Peer Review Status:

Version 1

Reviewer Report 05 July 2023

https://doi.org/10.5256/f1000research.145279.r175294

© 2023 Gillman M. This is an open access peer review report distributed under the terms of the Creative
Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium,
provided the original work is properly cited.

Max Gillman
Department of Economics, University of Missouri-St Louis, St. Louis, Missouri, USA

The topic is interesting. The problem is that the authors purport to show what happens during
recessions to consumer savings and financial decisions, but then use a panel data study of 428
participants who have been affected by the war in Ukraine and have experienced recessions in the
past decade. The sample is taken during the Ukraine wartime period of early 2023.

Lumping together those affected by the Ukraine-Russia war, and those who have experienced a
recession in the last decade is an odd combination. It is unclear what is the relation between those
affected by the war and those experiencing a past recession. Therefore the results cannot be
clearly delineated as to whether this is a wartime result or a recession result, which the authors
claim.

The results make perfect sense in general, that higher income people have a more sophisticated
financial education. But I do not see how this relates to people affected by the war.

This sort of question about behavior during recessions should not have anything to do with
wartime periods unless there is some different type of hypothesis. Wartime of course creates
economic calamity, more of what economists call a negative rare event. This is not a recession, but
an economic disaster of untold proportions.

The paper needs to somehow untangle the two vastly different effects: being affected by a current
ongoing war, and how people behave in recessions in terms of savings and financial decisions.

It is also unclear how the sample selection may bias the results: who would be likely to respond to
such a study questionnaire? It may be those with a low value of time, or those particularly affected
by the war. Either can bias the results, in various directions.

Is the work clearly and accurately presented and does it cite the current literature?
Yes

 
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 F1000Research 2023, 12:525 Last updated: 01 AUG 2023

Is the study design appropriate and is the work technically sound?

Yes

Are sufficient details of methods and analysis provided to allow replication by others?
Yes

If applicable, is the statistical analysis and its interpretation appropriate?

I cannot comment. A qualified statistician is required.

Are all the source data underlying the results available to ensure full reproducibility?
Yes

Are the conclusions drawn adequately supported by the results?

Yes

Competing Interests: No competing interests were disclosed.

Reviewer Expertise: Macroeconomics, monetary economics, business cycles, asset pricing, human
capital.

I confirm that I have read this submission and believe that I have an appropriate level of
expertise to confirm that it is of an acceptable scientific standard, however I have
significant reservations, as outlined above.

Reviewer Report 04 July 2023

https://doi.org/10.5256/f1000research.145279.r176655

© 2023 Pigliucci M. This is an open access peer review report distributed under the terms of the Creative
Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium,
provided the original work is properly cited.

Michele Pigliucci
Link Campus University, Rome, Italy

The article provide interesting results of a survey aiming at investigating how personal financial
attitudes and behaviors change during crisis periods, namely Russo-Ukrainian war.

The results of the survey are organised and summarised in order to give evidence to the different
behaviors registered among people according to demographic and financial education elements.

The article is well documented, and result well explained. Furthermore, an explanation about the
geographic distribution of sampling could be needed to better read the result meaning.

The indication about "countries that have been affected by the war in Ukraine and have
experienced periods of recession in the past decade" looks too much general: every country is

 
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 F1000Research 2023, 12:525 Last updated: 01 AUG 2023

actually affected by the war, in different ways.

Different countries register different levels of damage from Ukraine-Russo war, and it can change
the result interpretation of the survey.

Is the work clearly and accurately presented and does it cite the current literature?
Yes

Is the study design appropriate and is the work technically sound?

Partly

Are sufficient details of methods and analysis provided to allow replication by others?
Partly

If applicable, is the statistical analysis and its interpretation appropriate?

Partly

Are all the source data underlying the results available to ensure full reproducibility?
Yes

Are the conclusions drawn adequately supported by the results?

Partly

Competing Interests: No competing interests were disclosed.

Reviewer Expertise: Economic Geography, Geopolitics, regional development

I confirm that I have read this submission and believe that I have an appropriate level of
expertise to confirm that it is of an acceptable scientific standard, however I have
significant reservations, as outlined above.

 
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