Household decision making and savings impacts: further evidence from a commitment savings product in the Philippines

Arbeitspapier

Commitment devices for savings could benefit those with self-control as well as familial or spousal control issues. We find evidence to support both motivations. We examine the impact of a commitment savings product in the Philippines on household decision making power and selfperception of savings behavior, as well as actual savings. The product leads to more decision making power in the household for women, and likewise more purchases of female-oriented durable goods. We also find that the product leads women who appear time-inconsistent in a baseline survey to self-report being a disciplined saver in the follow-up survey. For impact on savings balances, we find that the 81% increase in savings after one year did not crowd out savings held outside of the participating bank, but that the longer-term impact over two and a half years on bank savings dissipated to only a 33% increase, which is no longer statistically significant. We discuss reasons why the effect dissipated and the implications for designing and mplementing sustainable, equilibrium-shifting interventions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Center Discussion Paper ; No. 939

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Economics of Gender; Non-labor Discrimination ; Microeconomic Analyses of Economic Development ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: Savings ; microfinance ; female empowerment ; household decision making ; commitment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ashraf, Nava ; Karlan, Dean S. ; Yin, Wesley
• Event: Veröffentlichung
• (who): Yale University, Economic Growth Center
• (where): New Haven, CT
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/26980
• Last update: 10.03.2025, 11:45 AM CET