Savings goal calendars as soft commitment devices: Evidence from small business owners in Uganda

Arbeitspapier

This study examines the effect of a soft commitment device in the form of a savings goal calendar on savings for small business owners in Kampala, Uganda. We run a randomized controlled trial (RCT) under which the treatment group receives a calendar designed to set savings goals and to make a plan to reach this goal. The control group is given a plain calendar. We find no average effect on savings, but show that present-biased individuals save more when given the calendar. Further examinations indicate that present-biased individuals are more likely to use the calendar, suggesting that, in line with theory, present-biased individuals have a demand.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 1919

Classification and Topics

• Classification: Wirtschaft ; Microeconomic Analyses of Economic Development ; Household Saving; Personal Finance ; Firm Behavior: Empirical Analysis ; Field Experiments
• Subject: Soft Commitment ; Savings ; Time Preferences ; Small Business Growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Grohmann, Antonia ; Lakemann, Tabea ; Seitz, Helke
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/227767
• Last update: 10.03.2025, 11:42 AM CET