Do Opposites Detract? Intrahousehold Preference Heterogeneity and Inefficient Strategic Savings
Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)
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Title |
Do Opposites Detract? Intrahousehold Preference Heterogeneity and Inefficient Strategic Savings
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Identifier |
https://doi.org/10.7910/DVN/QQUIZC
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Creator |
Schaner, Simone
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Publisher |
Harvard Dataverse
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Description |
This paper uses a field experiment to test whether intrahousehold heterogeneity in discount factors leads to inefficient strategic savings behavior. I gave married couples in rural Kenya the opportunity to open both joint and individual bank accounts at randomly assigned interest rates. I also directly elicited discount factors for all individuals in the experiment. Couples who are well matched on discount factors are less likely to use costly individual accounts and respond robustly to relative rates of return between accounts, while their poorly matched peers do not. Consequently, poorly matched couples forgo significantly more interest earnings on their savings.
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Subject |
Social Sciences
Household production Intrahousehold allocation Saving Personal finance Marriage Economic development Domestic abuse |
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Language |
English
Swahili |
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Contributor |
Research Support, Innovations for Poverty Action
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Type |
Survey data
Administrative data |
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