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Seminarios académicos y conferencias

Claudia Martínez, PUC, Economía

"Savings Incentives"

Coautores: Abhijit Banerjee y Esteban Puentes.

2 mayo 2018 - 15:30 hrs.

Sala de postgrados, Facultad de Ciencias Económicas y Administrativas UC

Abstract: Savings promotion is a key aspect of social protection, as it increases the ability of low-income families to guard themselves against adverse economic shock; consequently, policies to improve financial inclusion providing formal savings devices have grown worldwide. Despite the above mentioned, evidence shows that the sole access to saving devices is not necessarily linked to an increase of savings. Individuals may have behavioral biases that limit their savings. For example, limited attention and time inconsistency have proven to be important, with SMS savings reminders and financial instruments with default savings being effective in increasing the amounts of savings. Using a randomized control trial, we evaluate both types of devices in vulnerable populations of Chile. We also test the effectiveness of providing savings rules of thumb. One year after the offering, the automatic savings plan increases savings by 25%, whereas the rule of thumb treatment had a positive but insignificant impact. On the other hand, savings remainders have a negative impact on a transactional bank account balances, and no impact on savings account balances.