VGSF - WU Vienna - LC

Alberto Rossi, Georgetown University, Luohan Academy

Campus WU TC.5.05 11:00 - 12:15

Organizer VGSF

As part of the ser­ies of the "Fin­ance Re­search Sem­inar", VGSF wel­comes Al­berto Rossi from Geor­getown Uni­versity, Luo­han Academy to present his re­search pa­per.
Per­sonal Webpage

Pa­per

Goal Set­ting and Sav­ing in the FinTech Era

We study the ef­fect­ive­ness of soft, self-designed com­mit­ment devices, i.e. sav­ing goals, in in­creas­ing in­di­vidu­als’ sav­ings us­ing data from a FinTech App. We es­tab­lish that set­ting goals in­creases in­di­vidu­als’ sav­ings rate and show that the ef­fect is causal us­ing a dif­fer­ence-in-dif­fer­ences iden­ti­fic­a­tion strategy that ex­ploits the ran­dom assign­ment of users into a group of beta-­test­ers who can set goals and a group of users who can­not. The in­creased sav­ings within the App do not come at the ex­pense of re­duced sav­ings out­side the App and that goal-­set­ting also helps the in­di­vidu­als the lit­er­at­ure has iden­ti­fied as the ones with the lowest propensity to save. We ex­plore the eco­nomic chan­nels of our res­ults by match­ing App user sur­vey re­sponses to their be­ha­vior and high­light the im­port­ance of a mon­it­or­ing chan­nel, con­sist­ent with mod­els where agents ex­per­i­ence dis­util­ity from fall­ing short of their goal and goal set­ting help­ing in­di­vidu­als to fol­low through on their in­ten­tions by in­creas­ing their at­ten­tion.



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