Do lottery payments induce savings behavior? Evidence from the lab

• 成果类型: Article
• 署名作者: Filiz-Ozbay, Emel; Guryan, Jonathan; Hyndman, Kyle; Kearney, Melissa; Ozbay, Erkut Y.
• 署名单位: University System of Maryland; University of Maryland College Park; Northwestern University; National Bureau of Economic Research; University of Texas System; University of Texas Dallas
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2015.02.007
• 发表日期: 2015
• 页码: 1-24
• 关键词: Prize Linked Savings; lotteries; risk preferences; Prelec weighting

摘要

This paper presents the results of a laboratory experiment designed to investigate whether the option of a Prize Linked Savings (PLS) product alters the likelihood that subjects choose to delay payment. By comparing PLS and standard savings products in a controlled way, we find strong evidence that a PLS payment option leads to greater rates of payment deferral than does a straightforward interest payment option of the same expected value. The appeal of the PLS option is strongest among men and self-reported lottery players. We use the results of our experiment to structurally estimate the parameters of the decision problem governing time preference, risk aversion, and probability weighting. We employ the parameter estimates in a series of policy simulations that compare the relative effectiveness of PLS products as compared to standard savings products. (C) 2015 Elsevier B.V. All rights reserved.