Found 4 article(s) for author 'Brigitte Madrian'

Walmart Tries to Make Better Savers out of the Unbanked

Walmart Tries to Make Better Savers out of the Unbanked. Brigitte Madrian, July 7, 2017, Audio, “Jamie Aronton doesn’t have a bank account. Instead, she uses Money Mart, a check cashing spot in Pittsburgh, to direct deposit her salary onto prepaid debit cards. She makes $12-an-hour in a housekeeping job and said that by the time her deposits come through her cards are pretty tapped out.Link

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Does Aggregated Returns Disclosure Increase Portfolio Risk Taking?

Does Aggregated Returns Disclosure Increase Portfolio Risk Taking? David Laibson, Brigitte Madrian, August 11, 2016, Paper, “Many experiments have found that participants take more investment risk if they see returns less frequently, see portfolio-level returns (rather than each individual asset’s returns), or see long-horizon (rather than one-year) historical return distributions. In contrast, we find that such information aggregation treatments do not affect total equity investment when we make the investment environment more realistic than in prior experiments. Previously documented aggregation effects are not robust to changes in the risky asset’s return distribution or the introduction of a multi-day delay between portfolio choice and return realization.Link

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Self Control and Commitment: Can Decreasing the Liquidity of a Savings Account Increase Deposits?

Self Control and Commitment: Can Decreasing the Liquidity of a Savings Account Increase Deposits? John Beshears, David Laibson, and Brigitte Madrian, August 2015, Paper. “If individuals have self-control problems, they may take up commitment contracts that restrict their spending. We experimentally investigate how contract design affects the demand for commitment contracts. Each participant divides money between a liquid account, which permits unrestricted withdrawals, and a commitment account with withdrawal restrictions that are randomized across participants. When the two accounts pay the same interest rate...” Link

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Applying Insights from Behavioral Economics to Policy Design

Applying Insights from Behavioral Economics to Policy Design. Brigitte Madrian, August 2014, Paper. “The premise of this article is that an understanding of psychology and other social science disciplines can inform the effectiveness of the economic tools traditionally deployed in carrying out the functions of government, which include remedying market failures, redistributing income, and collecting tax revenue. An understanding of psychology can also lead to the development of different policy tools that better motivate desired behavior change or that are more cost-effective than traditional policy…” May require purchase or user account. Link

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