How to Raise Household Savings in LAC: Constraints and Best Practices
This technical note examines demand-side constraints households in Latin America and the Caribbean face when making saving decisions, particularly households from lower income deciles. This emphasis is important because poverty can impact individuals' ability to process information, manage their time efficiently, or resist temptation, thus limiting their ability to make sound financial choices, forecast, or plan ahead. The note first reviews the main formal constraints on saving such as transaction costs, regulatory barriers and limited trust in financial systems. The note then considers constraints on saving in general, whether formal or informal, including social pressure, intra-household allocation issues, information and knowledge gaps, and behavioral biases when making financial choices. Reviewing advances in behavioral economics, particular emphasis is placed on how features of individual behavior can impact savings. Alleviating behavioral constraints could yield large welfare gains at relatively low costs.
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Format: | Technical Notes biblioteca |
Language: | English |
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Inter-American Development Bank
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Subjects: | Household Saving, Saving Behavior, Saving Rate, Financial System, Interest Rate, Poverty, Financial Service, Knowledge Gap, Best Practices, C93 - Field Experiments, D13 - Household Production and Intrahousehold Allocation, D87 - Neuroeconomics, O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements, savings behavior, |
Online Access: | http://dx.doi.org/10.18235/0009286 https://publications.iadb.org/en/how-raise-household-savings-lac-constraints-and-best-practices |
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dig-bid-node-124352024-05-30T20:12:52ZHow to Raise Household Savings in LAC: Constraints and Best Practices 2016-04-12T00:00:00+0000 http://dx.doi.org/10.18235/0009286 https://publications.iadb.org/en/how-raise-household-savings-lac-constraints-and-best-practices Inter-American Development Bank Household Saving Saving Behavior Saving Rate Financial System Interest Rate Poverty Financial Service Knowledge Gap Best Practices C93 - Field Experiments D13 - Household Production and Intrahousehold Allocation D87 - Neuroeconomics O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements savings behavior This technical note examines demand-side constraints households in Latin America and the Caribbean face when making saving decisions, particularly households from lower income deciles. This emphasis is important because poverty can impact individuals' ability to process information, manage their time efficiently, or resist temptation, thus limiting their ability to make sound financial choices, forecast, or plan ahead. The note first reviews the main formal constraints on saving such as transaction costs, regulatory barriers and limited trust in financial systems. The note then considers constraints on saving in general, whether formal or informal, including social pressure, intra-household allocation issues, information and knowledge gaps, and behavioral biases when making financial choices. Reviewing advances in behavioral economics, particular emphasis is placed on how features of individual behavior can impact savings. Alleviating behavioral constraints could yield large welfare gains at relatively low costs. Inter-American Development Bank Verónica Frisancho Technical Notes application/pdf IDB Publications Latin America The Caribbean en |
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Household Saving Saving Behavior Saving Rate Financial System Interest Rate Poverty Financial Service Knowledge Gap Best Practices C93 - Field Experiments D13 - Household Production and Intrahousehold Allocation D87 - Neuroeconomics O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements savings behavior Household Saving Saving Behavior Saving Rate Financial System Interest Rate Poverty Financial Service Knowledge Gap Best Practices C93 - Field Experiments D13 - Household Production and Intrahousehold Allocation D87 - Neuroeconomics O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements savings behavior |
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Household Saving Saving Behavior Saving Rate Financial System Interest Rate Poverty Financial Service Knowledge Gap Best Practices C93 - Field Experiments D13 - Household Production and Intrahousehold Allocation D87 - Neuroeconomics O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements savings behavior Household Saving Saving Behavior Saving Rate Financial System Interest Rate Poverty Financial Service Knowledge Gap Best Practices C93 - Field Experiments D13 - Household Production and Intrahousehold Allocation D87 - Neuroeconomics O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements savings behavior Inter-American Development Bank How to Raise Household Savings in LAC: Constraints and Best Practices |
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This technical note examines demand-side constraints households in Latin America and the Caribbean face when making saving decisions, particularly households from lower income deciles. This emphasis is important because poverty can impact individuals' ability to process information, manage their time efficiently, or resist temptation, thus limiting their ability to make sound financial choices, forecast, or plan ahead. The note first reviews the main formal constraints on saving such as transaction costs, regulatory barriers and limited trust in financial systems. The note then considers constraints on saving in general, whether formal or informal, including social pressure, intra-household allocation issues, information and knowledge gaps, and behavioral biases when making financial choices. Reviewing advances in behavioral economics, particular emphasis is placed on how features of individual behavior can impact savings. Alleviating behavioral constraints could yield large welfare gains at relatively low costs. |
author2 |
Verónica Frisancho |
author_facet |
Verónica Frisancho Inter-American Development Bank |
format |
Technical Notes |
topic_facet |
Household Saving Saving Behavior Saving Rate Financial System Interest Rate Poverty Financial Service Knowledge Gap Best Practices C93 - Field Experiments D13 - Household Production and Intrahousehold Allocation D87 - Neuroeconomics O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements savings behavior |
author |
Inter-American Development Bank |
author_sort |
Inter-American Development Bank |
title |
How to Raise Household Savings in LAC: Constraints and Best Practices |
title_short |
How to Raise Household Savings in LAC: Constraints and Best Practices |
title_full |
How to Raise Household Savings in LAC: Constraints and Best Practices |
title_fullStr |
How to Raise Household Savings in LAC: Constraints and Best Practices |
title_full_unstemmed |
How to Raise Household Savings in LAC: Constraints and Best Practices |
title_sort |
how to raise household savings in lac: constraints and best practices |
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Inter-American Development Bank |
url |
http://dx.doi.org/10.18235/0009286 https://publications.iadb.org/en/how-raise-household-savings-lac-constraints-and-best-practices |
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AT interamericandevelopmentbank howtoraisehouseholdsavingsinlacconstraintsandbestpractices |
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1806237136605675520 |