Policy Seminars
Speaker: Stephan Meier |
Columbia University |
Topic: Evidence on self-help groups and peer pressure as savings commitment device |
Date/Place/Time:
Friday, November 5, 2010 at 1:30PM-3:00PM UCLA Anderson Cornell Hall D307 |
Abstract: Peer groups are often used as a commitment device to achieve personal goals, but there is little empirical evidence evaluating their effectiveness and analyzing what aspects lead to their success. In collaboration with a large commercial bank and a microfinance institution, we conducted two randomized field experiments among low-income micro-entrepreneurs in Chile, to test the effect of peer groups and increases in the interest rate on savings. We find that self-help peer groups increase the number of deposits in a formal savings account 3.5-fold, and almost double the average savings balance. |
Link to paper (if available): Click here |