When the message hurts: The unintended impacts of nudges on saving

Alin Marius Andrieş and Sarah Walker
Authors registered in the RePEc Author Service: Alin Marius Andrieș

Journal of Comparative Economics, 2023, vol. 51, issue 2, 439-456

Abstract: We implement a field experiment in Romania to elucidate how informational nudges and goal setting impact saving. We find no evidence that text message reminders, either in the form of a general reminder or information about the saving goals of peers, encourage saving. Further, both types of messages discourage saving for participants who set a goal, particularly among high goal setters. We posit that informational nudges unintentionally increase the salience of unrealistic goals and engender boomerang effects that discourage high goal setters from saving. Among participants who received no messages, those who set goals save more, suggesting a tradeoff between commitment devices and informational nudges in this context.

Keywords: Saving; Nudges; Commitment devices; Reminders; Peer information; Goal setting; Boomerang effects; Middle-income; Romania (search for similar items in EconPapers)
JEL-codes: C93 D14 G41 G51 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:51:y:2023:i:2:p:439-456

DOI: 10.1016/j.jce.2023.01.002

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