The two‐fold purpose of this study was to explore the financial capability of low‐income consumers from rural regions of Poland, using Xiao’s financial capability index, while accounting for their poverty status, demographic and financial characteristics. To test the relevant hypothesis of the study, a micro database of low‐income consumers was used. Factor, descriptive and correlation analyses were employed for preliminary examinations. One‐way ANOVA was used to examine the impact of different poverty indicators on financial capability index variables. Multiple OLS regressions were used to examine the influence of the selected factors on the level of financial capability. Six sets of linear regression models were used to explore the effects of factors associated with the financial capability variables. The findings of our study suggest that financial inclusion is an essential component of the financial capability index. The results also show that all five variables play a significant role in the financial capability index. Therefore, Xiao’s financial capability index captures a specific combination of financial literacy and financial behaviour of low‐income consumers from rural regions of Poland.

This paper examines low-income households' financial capability by looking at their financial literacy, financial behaviour as well as financial inclusion. Using the data from micro-study, the author proves that even though financial literacy among low-income households is very low, most financial behaviour (especially the basic ones like managing a financial budget) are rather high. It seems that being financially illiterate does not stop lowincome households from being financially capable, which might be mainly connected with some social and environmental factors that shape their capability and help low-income members of households to find some other ways of achieving satisfactory level of financial behaviour than just through increasing financial literacy. Moreover, having little money forces low-income households to become very careful financial decision-makers. Additionally, the multivariate analysis has shown that being financially literate (especially risk and debt literate) and being financially included are key latent factors in understanding financial capability among low-income households from rural regions of Poland. These two factors also play a significant role in understanding the adaptation to low-income among the polled households (measured by the marginal effects of pseudo-R 2 ratio in logit model).

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The paper investigates the price determinants, risk/return characteristics and investment performances of the Polish art market. Special attention is given to cultural and historical determinants underlying the creation of the Polish art market after 1989 and the dynamics of changes in the first two decades after the system transition. Data from auction annuals during the years from 1991 to 2012 and repeat-sales regression (RSR) method are used to create the index of 28,951 art transactions. Based on the art index values, we observe that the art index for the Polish auction market exhibits similar returns to the ones on treasury bonds and much lower returns than the ones on the Polish stock and gold prices. The volatility of the art index is, what is striking, much lower than the volatility of stocks, comparable to gold prices and much higher than the volatility of treasury bonds. Moreover, high correlation between art and money market instruments suggests a limited portfolio diversification opportunity.