Under-savers anonymous
Subtitle: evidence on self-help groups and peer pressure as a savings commitment device
By: Felipe Kast, Stephan Meier, Dina Pomeranz
Contributors: Meier, Stephan, 1972-; Pomeranz, Dina Deborah; Harvard Business School
Edition: Revised edition
Series: Working paper / Harvard Business School -- 12-060; Working paper (Harvard Business School) -- 12-060
Publisher: Harvard Business School
Published: 2012
Place of publication: Boston]
Language: eng
Number of pages: 46
Description: We test the effectiveness of self-help peer groups as a commitment device for precautionary savings, through two randomized field experiments among 2,687 micro-entrepreneurs in Chile. The first experiment finds that self-help peer groups are a powerful tool to increase savings (number of deposits grows 3.5-fold and average savings balance almost doubles). Conversely, a substantially higher interest rate has no effect on most participants. A second experiment tests an alternative delivery mechanism and shows that effects of a similar size can be achieved by holding people accountable through feedback text messages, without any meetings or peer pressure.
Notes: "Revised October 2012" -- Publisher's website.

Includes bibliographical references (pages 25-28).