Household Decision Making and Savings Impacts: Further Evidence from a Commitment Savings Product in the Philippines

Nava Ashraf, Dean Karlan and Wesley Yin

No 28399, Center Discussion Papers from Yale University, Economic Growth Center

Abstract: 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 self-perception 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 implementing sustainable, equilibrium-shifting interventions.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Pages: 27
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Household Decision Making and Savings Impacts: Further Evidence from a Commitment Savings Product in the Philippines (2006)
Working Paper: Household decision making and savings impacts: Further evidence from a commitment savings product in the philippines (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:yaleeg:28399

DOI: 10.22004/ag.econ.28399

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