Can Gambling Increase Savings? Empirical Evidence on Prize- Linked Savings Accounts

• 成果类型: Article
• 署名作者: Cole, Shawn; Iverson, Benjamin; Tufano, Peter
• 署名单位: Harvard University; National Bureau of Economic Research; Brigham Young University; University of Oxford
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.4047
• 发表日期: 2022
• 页码: 3282-3308
• 关键词: Household finance; banking; savings; prize-linked savings; lottery

摘要

This paper studies the adoption and impact of prize-linked savings (PLS) accounts, which offer lottery-like payouts to individual account holders in lieu of interest. Using microlevel data from a bank in South Africa, we show that PLS is attractive to a broad group of individuals, with financially constrained individuals and those with no other deposit accounts particularly likely to participate. Individuals who choose to use PLS increase their total savings on average by 1% of annual income. Exploiting the random assignment of prizes, we present causal evidence that PLS substitutes for lottery gambling but is a complement to standard savings.