Savings and prize-linked savings accounts

Arbeitspapier

Many households have insufficient savings to handle moderate and routine consumption shocks. Many of these financially fragile households also have the highest lottery expenditures as a proportion of income. This combination suggests that Prize-Linked Savings (PLS) accounts, that combine principal-security with lottery-type jackpots, can increase savings among these at-risk households. Results from an online experiment show that the introduction of PLS accounts increase total savings and reduce lottery expenditures significantly, especially among individuals with the lowest levels of savings and income. The results imply that PLS accounts offer a plausible market-based solution to nudge individuals to increase savings.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 6927

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Household Saving; Personal Finance ; Design of Experiments: Laboratory, Individual ; Sports; Gambling; Restaurants; Recreation; Tourism ; Consumer Economics: Empirical Analysis
• Thema: savings ; individual decision making ; personal finance ; lotteries ; experimental economics ; Sparen ; Entscheidung ; Private Finanzplanung ; Glücksspiel ; Test

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Atalay, Kadir ; Bakhtiar, Fayzan ; Cheung, Stephen L. ; Slonim, Robert
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/67228
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ