@article{Somville:293930,
      recid = {293930},
      author = {Somville, Vincent and Vandewalle, Lore},
      title = {Saving by default: evidence from a field experiment in  Rural India},
      publisher = {The Graduate Institute of International and Development  Studies},
      address = {Geneva. 2016},
      number = {BOOK},
      series = {Graduate Institute of International and Development  Studies Working Paper ; no. 02/2016},
      pages = {58 p.},
      year = {2016},
      abstract = {Worldwide, people are gaining access to a formal bank  account, which allows account-based instead of cash  payments. Based on a novel randomized control trial, we  document that the payment method is an important  determinant of savings behavior. In rural India, we study  the effect on savings of allocating identical weekly  payments on a bank account (treated) or in cash (control).  The treatment impact is huge: savings increase by 110%  within three months, and the effect is long-lasting.  Villagers paid in cash do not save more in other assets,  but increase consumption. Therefore, we infer that being  paid on a bank account has a net positive impact on total  savings. When we twist the design and start paying everyone  in cash, savings and consumption patterns no longer differ  between the treated and control. We interpret these  findings as the outcome of the default option, and shed  light on six plausible underlying mechanisms.},
      url = {http://repository.graduateinstitute.ch/record/293930},
      doi = {https://doi.org/10.71609/iheid-m423-1642},
}