Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi

Financial products and transfer schemes are typically designed to improve welfare by helping individuals follow through on their intertemporal plans. We implement an artefactual field experiment in Malawi to test the ability of households to manage a cash windfall by varying whether 474 households r...

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Main Authors:	Brune, Lasse, Giné, Xavier, Goldberg, Jessica, Yang, Dean
Format:	Journal Article
Published:	Elsevier 2018
Subjects:	SAVINGS DEFAULTS MENTAL ACCOUNTING TIME INCONSISTENCY NUDGES DIRECT DEPOSIT TRANSFER SCHEMES WELFARE IMPACT CASH TRANSFERS FINANCIAL MANAGEMENT HOUSEHOLD SPENDING
Online Access:	http://hdl.handle.net/10986/29256

id	okr-10986-29256
recordtype	oai_dc
spelling	okr-10986-292562021-05-25T10:54:43Z Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean SAVINGS DEFAULTS MENTAL ACCOUNTING TIME INCONSISTENCY NUDGES DIRECT DEPOSIT TRANSFER SCHEMES WELFARE IMPACT CASH TRANSFERS FINANCIAL MANAGEMENT HOUSEHOLD SPENDING Financial products and transfer schemes are typically designed to improve welfare by helping individuals follow through on their intertemporal plans. We implement an artefactual field experiment in Malawi to test the ability of households to manage a cash windfall by varying whether 474 households receive a payment in cash or through direct deposit into pre-established accounts at a local bank. Payments are made immediately, with one day delay, or with eight days delay. Defaulting the payments into savings accounts leads to higher net deposits into bank accounts, an effect that persists for a number of weeks afterwards. However, neither savings defaults nor payment delays affect the amount or composition of spending, suggesting that households manage cash effectively without the use of formal financial products. 2018-01-29T21:29:35Z 2018-01-29T21:29:35Z 2017-11 Journal Article Journal of Development Economics 0304-3878 http://hdl.handle.net/10986/29256 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research Africa Malawi
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	SAVINGS DEFAULTS MENTAL ACCOUNTING TIME INCONSISTENCY NUDGES DIRECT DEPOSIT TRANSFER SCHEMES WELFARE IMPACT CASH TRANSFERS FINANCIAL MANAGEMENT HOUSEHOLD SPENDING
spellingShingle	SAVINGS DEFAULTS MENTAL ACCOUNTING TIME INCONSISTENCY NUDGES DIRECT DEPOSIT TRANSFER SCHEMES WELFARE IMPACT CASH TRANSFERS FINANCIAL MANAGEMENT HOUSEHOLD SPENDING Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi
geographic_facet	Africa Malawi
description	Financial products and transfer schemes are typically designed to improve welfare by helping individuals follow through on their intertemporal plans. We implement an artefactual field experiment in Malawi to test the ability of households to manage a cash windfall by varying whether 474 households receive a payment in cash or through direct deposit into pre-established accounts at a local bank. Payments are made immediately, with one day delay, or with eight days delay. Defaulting the payments into savings accounts leads to higher net deposits into bank accounts, an effect that persists for a number of weeks afterwards. However, neither savings defaults nor payment delays affect the amount or composition of spending, suggesting that households manage cash effectively without the use of formal financial products.
format	Journal Article
author	Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean
author_facet	Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean
author_sort	Brune, Lasse
title	Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi
title_short	Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi
title_full	Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi
title_fullStr	Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi
title_full_unstemmed	Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi
title_sort	savings defaults and payment delays for cash transfers : field experimental evidence from malawi
publisher	Elsevier
publishDate	2018
url	http://hdl.handle.net/10986/29256
_version_	1764468887031644160

Savings Defaults and Payment Delays for Cash Transfers : Field Experimental Evidence from Malawi

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