The Persistent Power of Behavioral Change: Long-Run Impacts of Temporary Savings Subsidies for the Poor
By Simone G. Schaner. American Economic Journal: Applied Economics, 2018
115 citations recorded by the source corpus.
I use a field experiment in rural Kenya to study how temporary incentives to save impact long-run economic outcomes. Study participants randomly selected to receive large temporary interest rates on an individual bank account had significantly more income and assets 2.5–3.5 years after the interest rates expired. These changes are much larger than the short-run impacts on experimental bank account use and almost entirely driven by growth in entrepreneurship. In contrast, interest rates on joint accounts and modest cash payments did not significantly impact long-run economic outcomes. (JEL C93, D13, D14, D90, G21, I32, O12)
Subfields: Accounting, Economics and Econometrics, Safety Research
View Paper: https://www.semanticscholar.org/paper/f50e0244e74a5678d386a6bad6c5328d0dbfd900
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Citations in the corpus
- Why Do Defaults Affect Behavior? Experimental Evidence from Afghanistan (2018, background): “Such evidence is consistent with the idea that employees might form habits through the experience of saving (Becker and Murphy 1988; Charness and Gneezy 2009), perhaps through better financial planning (Thaler 1999; Schaner 2016).”
- The Cost of Convenience? (2017, unknown): “24See Schaner (2013) for a detailed analysis of the interest rate subsidies on longer-run economic outcomes.”