• Corpus ID: 10405027

Mental Accounting and Mobile Banking : Can labeling an M-PESA account increase savings ? ∗ Preliminary Results

  title={Mental Accounting and Mobile Banking : Can labeling an M-PESA account increase savings ? ∗ Preliminary Results},
  author={Erick Gong and Kelly Jones},
Working with a sample of vulnerable women in Kenya, we conduct a field experiment involving a savings intervention consisting of a labeled mobile banking (M-PESA) account, savings goal setting, and text message reminders. The effect of the intervention on savings is positive but imprecisely estimated. The intervention did lead to statistically significant increases in savings for those who report having problems saving due to spending on temptation goods. In addition, individuals with… 

Does Financial Inclusion Exclude? The Effect of Access to Savings on Informal Risk-Sharing in Kenya

In the absence of formal markets to manage risk and cope with shocks, individuals often rely on mutual interpersonal transfers, otherwise known as informal risk-sharing arrangements (IRSAs).

Pre-Analysis Plan: The Impact of a ”Carry-Around” Soft Commitment Device on Savings and Temptation Spending: A Field Experiment in Urban India

We study the impact of a portable ”soft” commitment device on the financial behavior of low-income slum dwellers in urban Pune, India. The portable device may add value to existing commitment designs

Do Saving Promotion Interventions Help Alleviate Poverty in Sub-Saharan Africa? A Systematic Review and Meta-Analysis

Saving promotion interventions have gained momentum in international development over the recent years. Our analysis investigates whether saving promotion can effectively reduce poverty and economic

Behavioural insights to support increased consumption of quality protein maize by young children: a cluster randomised trial in Ethiopia

Enhancing the distribution of new, biofortified crop varieties with a consumption targeting campaign can change storage, cooking and consumption behaviours, however, these improved behaviours did not translate into increased growth in this setting.




Why Don't the Poor Save More? Evidence from Health Savings Experiments

eScholarship provides open access, scholarly publishing services to the University of California and delivers a dynamic research platform to scholars worldwide. Abstract: Using data from a field

Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines

We designed a commitment savings product for a Philippine bank and implemented it using a randomized control methodology. The savings product was intended for individuals who want to commit now to

Loose Knots: Strong Versus Weak Commitments to Save for Education in Uganda

Commitment devices offer an opportunity to restrict future choices. However, if severe restrictions deter participation, weaker restrictions may be a more effective means of changing behavior. We

Saving More to Borrow Less: Experimental Evidence from Access to Formal Savings Accounts in Chile

Poverty is often characterized not only by low and unstable income, but also by heavy debt burdens. We find that reducing barriers to saving through access to free savings accounts decreases

Documenting the birth of a financial economy

It is found that in the face of these events, users of mobile money are better able to tap into remittances to finance additional health care costs without having to forego necessary expenditures on education, food, and other consumption needs.


Five sets of constraints that may hinder the adoption and effective usage of savings products and services by the poor are laid out: transaction costs, lack of trust and regulatory barriers, information and knowledge gaps, social constraints, and behavioral biases.

Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution

We explore the impact of reduced transaction costs on risk sharing by estimating the effects of a mobile money innovation on consumption. In our panel sample, adoption of the innovation increased

The Shape of Temptation: Implications for the Economic Lives of the Poor

This paper argues that the relation between temptations and the level of consumption plays a key role in explaining the observed behaviors of the poor. Temptation goods are defined to be the set of

Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies

This paper measures the economic impact of social pressure to share income with kin and neighbors in rural Kenyan villages. The authors conduct a lab experiment in which they randomly vary the