Commitments to Save : A Field Experiment in Rural Malawi

This paper reports the results of a field experiment that randomly assigned smallholder cash crop farmers formal savings accounts. In collaboration with a microfinance institution in Malawi, the authors tested two primary treatments, offering eithe...

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Main Authors:	Brune, Lasse, Giné, Xavier, Goldberg, Jessica, Yang, Dean
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCESS TO FUNDS ACCOUNT HOLDERS AGRICULTURAL INPUTS AGRICULTURE AUCTION AUCTION FLOOR BANK ACCOUNT BANK ACCOUNTS BANK OPERATIONS BENEFICIARIES BUDGETING CASH-CROP COST ANALYSIS CREDIT ACCESS CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT PRODUCTS CROP VALUE DEBT DEPOSIT DEPOSIT ACCOUNT DEPOSIT ACCOUNTS DEPOSIT MOBILIZATION DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DURABLE DURABLE ASSETS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC OUTCOMES ECONOMIC RESEARCH ECONOMICS RESEARCH EXPENDITURE EXPENDITURES FARM OUTPUT FARMERS FEMALE EMPOWERMENT FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FOREIGN EXCHANGE FUTURE RESEARCH FUTURE STUDIES GOVERNMENT BUDGET GOVERNMENT BUDGETS GROUP LOAN HOLDING HOLDINGS HOUSEHOLD COMPOSITION HOUSEHOLD SIZE HOUSEHOLD SURVEY ILLITERACY INCENTIVES TO SAVE INCOME INCOME LEVELS INCOMES INDIVIDUAL ACCOUNTS INFORMAL INSURANCE INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT BEHAVIOR LACK OF KNOWLEDGE LANDOWNERS LENDER LENDERS LIABILITY LOAN LOAN RECOVERY LOAN REPAYMENT LOW-INCOME COUNTRIES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISE CREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS OPTIMAL CONTRACTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POOR PORTFOLIO PORTFOLIOS POSITIVE EFFECTS PREMATURE WITHDRAWALS PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY RATES OF RETURN RESOURCE ALLOCATION RETURNS ROSCAS RURAL RURAL BANKING RURAL BANKS RURAL COMMUNITIES RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PROGRAMS SMALL BUSINESSES SMALLHOLDER FARMERS SOCIAL NETWORKS STOCKS SURCHARGES SUSTAINABLE FINANCE SUSU TIME DEPOSIT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPORT VILLAGE ECONOMIES WITHDRAWAL
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110802154804 http://hdl.handle.net/10986/3510

id	okr-10986-3510
recordtype	oai_dc
spelling	okr-10986-35102021-04-23T14:02:10Z Commitments to Save : A Field Experiment in Rural Malawi Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean ACCESS TO FUNDS ACCOUNT HOLDERS AGRICULTURAL INPUTS AGRICULTURE AUCTION AUCTION FLOOR BANK ACCOUNT BANK ACCOUNTS BANK OPERATIONS BENEFICIARIES BUDGETING CASH-CROP COST ANALYSIS CREDIT ACCESS CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT PRODUCTS CROP VALUE DEBT DEPOSIT DEPOSIT ACCOUNT DEPOSIT ACCOUNTS DEPOSIT MOBILIZATION DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DURABLE DURABLE ASSETS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC OUTCOMES ECONOMIC RESEARCH ECONOMICS RESEARCH EXPENDITURE EXPENDITURES FARM OUTPUT FARMERS FEMALE EMPOWERMENT FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FOREIGN EXCHANGE FUTURE RESEARCH FUTURE STUDIES GOVERNMENT BUDGET GOVERNMENT BUDGETS GROUP LOAN HOLDING HOLDINGS HOUSEHOLD COMPOSITION HOUSEHOLD SIZE HOUSEHOLD SURVEY ILLITERACY INCENTIVES TO SAVE INCOME INCOME LEVELS INCOMES INDIVIDUAL ACCOUNTS INFORMAL INSURANCE INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT BEHAVIOR LACK OF KNOWLEDGE LANDOWNERS LENDER LENDERS LIABILITY LOAN LOAN RECOVERY LOAN REPAYMENT LOW-INCOME COUNTRIES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISE CREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS OPTIMAL CONTRACTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POOR PORTFOLIO PORTFOLIOS POSITIVE EFFECTS PREMATURE WITHDRAWALS PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY RATES OF RETURN RESOURCE ALLOCATION RETURNS ROSCAS RURAL RURAL BANKING RURAL BANKS RURAL COMMUNITIES RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PROGRAMS SMALL BUSINESSES SMALLHOLDER FARMERS SOCIAL NETWORKS STOCKS SURCHARGES SUSTAINABLE FINANCE SUSU TIME DEPOSIT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPORT VILLAGE ECONOMIES WITHDRAWAL This paper reports the results of a field experiment that randomly assigned smallholder cash crop farmers formal savings accounts. In collaboration with a microfinance institution in Malawi, the authors tested two primary treatments, offering either: 1) "ordinary" accounts, or 2) both ordinary and "commitment" accounts. Commitment accounts allowed customers to restrict access to their own funds until a future date of their choosing. A control group was not offered any account but was tracked alongside the treatment groups. Only the commitment treatment had statistically significant effects on subsequent outcomes. The effects were positive and large on deposits and withdrawals immediately prior to the next planting season, agricultural input use in that planting, crop sales from the subsequent harvest, and household expenditures in the period after harvest. Across the set of key outcomes, the commitment savings treatment had larger effects than the ordinary savings treatment. Additional evidence suggests that the positive impacts of commitment derive from keeping funds from being shared with one's social network. 2012-03-19T18:03:47Z 2012-03-19T18:03:47Z 2011-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110802154804 http://hdl.handle.net/10986/3510 English Policy Research working paper ; no. WPS 5748,Impact Evaluation series ; no. IE 50 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Sub-Saharan Africa Southern Africa Malawi
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO FUNDS ACCOUNT HOLDERS AGRICULTURAL INPUTS AGRICULTURE AUCTION AUCTION FLOOR BANK ACCOUNT BANK ACCOUNTS BANK OPERATIONS BENEFICIARIES BUDGETING CASH-CROP COST ANALYSIS CREDIT ACCESS CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT PRODUCTS CROP VALUE DEBT DEPOSIT DEPOSIT ACCOUNT DEPOSIT ACCOUNTS DEPOSIT MOBILIZATION DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DURABLE DURABLE ASSETS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC OUTCOMES ECONOMIC RESEARCH ECONOMICS RESEARCH EXPENDITURE EXPENDITURES FARM OUTPUT FARMERS FEMALE EMPOWERMENT FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FOREIGN EXCHANGE FUTURE RESEARCH FUTURE STUDIES GOVERNMENT BUDGET GOVERNMENT BUDGETS GROUP LOAN HOLDING HOLDINGS HOUSEHOLD COMPOSITION HOUSEHOLD SIZE HOUSEHOLD SURVEY ILLITERACY INCENTIVES TO SAVE INCOME INCOME LEVELS INCOMES INDIVIDUAL ACCOUNTS INFORMAL INSURANCE INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT BEHAVIOR LACK OF KNOWLEDGE LANDOWNERS LENDER LENDERS LIABILITY LOAN LOAN RECOVERY LOAN REPAYMENT LOW-INCOME COUNTRIES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISE CREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS OPTIMAL CONTRACTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POOR PORTFOLIO PORTFOLIOS POSITIVE EFFECTS PREMATURE WITHDRAWALS PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY RATES OF RETURN RESOURCE ALLOCATION RETURNS ROSCAS RURAL RURAL BANKING RURAL BANKS RURAL COMMUNITIES RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PROGRAMS SMALL BUSINESSES SMALLHOLDER FARMERS SOCIAL NETWORKS STOCKS SURCHARGES SUSTAINABLE FINANCE SUSU TIME DEPOSIT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPORT VILLAGE ECONOMIES WITHDRAWAL
spellingShingle	ACCESS TO FUNDS ACCOUNT HOLDERS AGRICULTURAL INPUTS AGRICULTURE AUCTION AUCTION FLOOR BANK ACCOUNT BANK ACCOUNTS BANK OPERATIONS BENEFICIARIES BUDGETING CASH-CROP COST ANALYSIS CREDIT ACCESS CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT PRODUCTS CROP VALUE DEBT DEPOSIT DEPOSIT ACCOUNT DEPOSIT ACCOUNTS DEPOSIT MOBILIZATION DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE DURABLE DURABLE ASSETS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC OUTCOMES ECONOMIC RESEARCH ECONOMICS RESEARCH EXPENDITURE EXPENDITURES FARM OUTPUT FARMERS FEMALE EMPOWERMENT FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FOREIGN EXCHANGE FUTURE RESEARCH FUTURE STUDIES GOVERNMENT BUDGET GOVERNMENT BUDGETS GROUP LOAN HOLDING HOLDINGS HOUSEHOLD COMPOSITION HOUSEHOLD SIZE HOUSEHOLD SURVEY ILLITERACY INCENTIVES TO SAVE INCOME INCOME LEVELS INCOMES INDIVIDUAL ACCOUNTS INFORMAL INSURANCE INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT BEHAVIOR LACK OF KNOWLEDGE LANDOWNERS LENDER LENDERS LIABILITY LOAN LOAN RECOVERY LOAN REPAYMENT LOW-INCOME COUNTRIES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISE CREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS OPTIMAL CONTRACTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POOR PORTFOLIO PORTFOLIOS POSITIVE EFFECTS PREMATURE WITHDRAWALS PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY RATES OF RETURN RESOURCE ALLOCATION RETURNS ROSCAS RURAL RURAL BANKING RURAL BANKS RURAL COMMUNITIES RURAL HOUSEHOLDS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SAVINGS PROGRAMS SMALL BUSINESSES SMALLHOLDER FARMERS SOCIAL NETWORKS STOCKS SURCHARGES SUSTAINABLE FINANCE SUSU TIME DEPOSIT TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPORT VILLAGE ECONOMIES WITHDRAWAL Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean Commitments to Save : A Field Experiment in Rural Malawi
geographic_facet	Africa Africa Sub-Saharan Africa Southern Africa Malawi
relation	Policy Research working paper ; no. WPS 5748,Impact Evaluation series ; no. IE 50
description	This paper reports the results of a field experiment that randomly assigned smallholder cash crop farmers formal savings accounts. In collaboration with a microfinance institution in Malawi, the authors tested two primary treatments, offering either: 1) "ordinary" accounts, or 2) both ordinary and "commitment" accounts. Commitment accounts allowed customers to restrict access to their own funds until a future date of their choosing. A control group was not offered any account but was tracked alongside the treatment groups. Only the commitment treatment had statistically significant effects on subsequent outcomes. The effects were positive and large on deposits and withdrawals immediately prior to the next planting season, agricultural input use in that planting, crop sales from the subsequent harvest, and household expenditures in the period after harvest. Across the set of key outcomes, the commitment savings treatment had larger effects than the ordinary savings treatment. Additional evidence suggests that the positive impacts of commitment derive from keeping funds from being shared with one's social network.
format	Publications & Research :: Policy Research Working Paper
author	Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean
author_facet	Brune, Lasse Giné, Xavier Goldberg, Jessica Yang, Dean
author_sort	Brune, Lasse
title	Commitments to Save : A Field Experiment in Rural Malawi
title_short	Commitments to Save : A Field Experiment in Rural Malawi
title_full	Commitments to Save : A Field Experiment in Rural Malawi
title_fullStr	Commitments to Save : A Field Experiment in Rural Malawi
title_full_unstemmed	Commitments to Save : A Field Experiment in Rural Malawi
title_sort	commitments to save : a field experiment in rural malawi
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110802154804 http://hdl.handle.net/10986/3510
_version_	1764387119200993280

Commitments to Save : A Field Experiment in Rural Malawi

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