Randomization for Causality, Ethnography for Mechanisms: Illiquid Savings for Liquor in an Autarkic Society

Ricardo Godoy, Dean Karlan and Jonathan Zinman

No 29566, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What should researchers do when confronted with surprising results? Financial access innovations usually leave “temptation” spending unaffected or reduced. However, we found that promotion of savings lockboxes in a largely autarkic society increased alcohol consumption and blood pressure, despite no one reporting intentions to save for alcohol. To probe mechanisms that could explain this pattern, we then used ethnographic methods, including direct observations of drinking (“scans”) and debriefing interviews to discuss the earlier trial results. We learn that sponsoring drinks confers prestige, but the stigma attached to drinking by outsiders likely discouraged reporting intentions to save for it.

JEL-codes: D12 I12 O15 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-mfd
Note: DEV EH LS PE
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Working Paper: Randomization for Causality, Ethnography for Mechanisms: Illiquid Savings for Liquor in an Autarkic Society (2022)
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