A5071283924- Financial Literacy, Pension, Retirement Analysis
- Housing Market and Economics
- Healthcare Policy and Management
- Retirement, Disability, and Employment
- Global Health Care Issues
- Financial Markets and Investment Strategies
- Decision-Making and Behavioral Economics
- Employment and Welfare Studies
- Gender, Labor, and Family Dynamics
- Economic theories and models
- Fiscal Policy and Economic Growth
- Economic and Environmental Valuation
- Auditing, Earnings Management, Governance
- Insurance, Mortality, Demography, Risk Management
- Insurance and Financial Risk Management
- Experimental Behavioral Economics Studies
- Vaccine Coverage and Hesitancy
- Corporate Taxation and Avoidance
- Banking stability, regulation, efficiency
- Behavioral Health and Interventions
- Corporate Finance and Governance
- Housing, Finance, and Neoliberalism
- Medication Adherence and Compliance
- Psychology of Moral and Emotional Judgment
- Healthcare Systems and Reforms
Yale University
2009-2023
Brigham Young University
2011-2023
National Bureau of Economic Research
2011-2023
Harvard University Press
2011-2023
Whitney Museum of American Art
2014-2023
Einaudi Institute for Economics and Finance
2020
International Paper (United States)
2006-2019
Public Policy Institute of California
2019
Brookings Institution
2019
Behavioral Tech
2019
This paper analyzes the impact of automatic enrollment on 401(k) savings behavior. We have two key findings. First, participation is significantly higher under enrollment. Second, a substantial fraction participants hired retain both default contribution rate and fund allocation even though few employees before picked this particular outcome. "default" behavior appears to result from participant inertia employee perceptions as investment advice. These findings implications for design plans...
In this article, we review the literature on financial literacy, education, and consumer outcomes. We consider how literacy is measured in current examine well existing addresses whether education improves or personal discuss extent to which a competitive market provides incentives for firms educate consumers offer products that facilitate informed choice. alternative policies improve outcomes compare evidence with efficacy cost of education. Finally, directions future research.
Defaults often have a large inuence on consumer decisions.We identify an overlooked but practical alternative to defaults: requiring individuals make explicit choice for themselves.We study such "active decisions" in the context of 401(k) saving.We nd that compelling new hires active decisions about enrollment raises initial fraction enroll by 28 percentage points relative standard opt-in procedure, producing savings distribution three months after hire would take 30 achieve under...
Abstract We evaluate why individuals invest in high-fee index funds. In our experiments, subjects each allocate $10,000 across four S&P 500 funds and are rewarded for their portfolio's subsequent return. Subjects overwhelmingly fail to minimize fees. reject the hypothesis that buy because of bundled nonportfolio services. Search costs fees matter, but even when we eliminate these costs, not minimized. Instead, place high weight on annualized returns since inception. Fees paid decrease...
Journal Article Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock? Get access Brigitte C. Madrian Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Economics, Volume 109, Issue 1, February 1994, Pages 27–54, https://doi.org/10.2307/2118427 Published: 01 1994
We evaluate the results of a field experiment designed to measure effect prompts form implementation intentions on realized behavioral outcomes. The outcome interest is influenza vaccination receipt at free on-site clinics offered by large firm its employees. All employees eligible for study participation received reminder mailings that listed times and locations relevant clinics. Mailings randomly assigned treatment conditions additionally included prompt write down either ( i ) date...
In this paper, we analyze the 401(k) savings behavior of employees in a large U.S. corporation before and after an interesting change company plan. Before plan change, were required to affirmatively elect participation After automatically immediately enrolled unless they made negative election opt out Although none economic features changed, switch automatic enrollment dramatically changed employees. We have two key findings. First, is significantly higher under enrollment. Second, default...
The recent financial crisis has led many to question how well businesses deliver services and regulatory institutions address problems in consumer markets. This paper discusses regulation, emphasizing the full range of arguments for regulation that derive from market failure limited rationality decision making. We present three case studies—of mortgage markets, payday lending, financing retirement consumption—to illustrate need for, limits of, regulation. argue if is be beneficial, it must...
ABSTRACT Using a field experiment in 401(k) plan, we measure the effect of disseminating information about peer behavior on savings. Low‐saving employees received simplified plan enrollment or contribution increase forms. A randomized subset forms stated fraction age‐matched coworkers participating participants contributing at least 6% pay to plan. We document an oppositional reaction: presence decreased savings nonparticipants who were ineligible for automatic enrollment, and higher...
This paper summarizes the empirical evidence on how defaults impact retirement savings outcomes.After outlining salient features of various sources income in U.S., presents outcomes at all stages lifecycle, including plan participation, rates, asset allocation, and post-retirement distributions.The then discusses why have such a tremendous outcomes.The concludes with discussion role public policy towards saving when matter.
We identify employees at seven companies whose 401(k) investment choices are dominated because they contributing less than the employer matching contribution threshold despite being vested in their match and able to make penalty-free withdrawals for any reason older 59½. At average firm, 36% of match-eligible over age 59½ forgo arbitrage profits that 1.6% annual pay, or $507. A survey educating about free lunch forgoing raised rates by a statistically insignificant 0.67% income among those...
ABSTRACT We show that individual investors over‐extrapolate from their personal experience when making savings decisions. Investors who particularly rewarding outcomes 401(k) saving—a high average and/or low variance return—increase rate more than have less experiences. This finding is not driven by aggregate time‐series shocks, income effects, rational learning about investing skill, investor fixed or time‐varying investor‐level heterogeneity correlated with portfolio allocations to stock,...
Many Americans fail to get life-saving vaccines each year, and the availability of a vaccine for COVID-19 makes challenge encouraging vaccination more urgent than ever. We present large field experiment ( N = 47,306) testing 19 nudges delivered patients via text message designed boost adoption influenza vaccine. Our findings suggest that messages sent prior primary care visit can rates by an average 5%. Overall, interventions performed better when they were 1) framed as reminders flu shots...
In this article we review the literature on financial literacy, education, and consumer outcomes.We consider how literacy is measured in current literature, examine well existing addresses whether education improves or personal discuss extent to which a competitive market provides incentives for firms educate consumers offer products that facilitate informed choice.We alternative policies improve outcomes, compare evidence efficacy cost of education.Finally, directions future research.
The premise of this article is that an understanding psychology and other social science disciplines can inform the effectiveness economic tools traditionally deployed in carrying out functions government, which include remedying market failures, redistributing income, collecting tax revenue. An also lead to development different policy better motivate desired behavior change or are more cost-effective than traditional tools. outlines a framework for thinking about context failures. It then...