Do Opposites Detract? Intrahousehold Preference Heterogeneity and Inefficient Strategic Savings

• DOI: 10.1257/app.20130271
• Publication Date: 2015-03-26T13:04:05Z
• Authors: Simone Schaner
• Keywords: Time preference

This paper uses a field experiment to test whether intrahousehold heterogeneity in discount factors leads inefficient strategic savings behavior. I gave married couples rural Kenya the opportunity open both joint and individual bank accounts at randomly assigned interest rates. also directly elicited for all individuals experiment. Couples who are well matched on less likely use costly respond robustly relative rates of return between accounts, while their poorly peers do not. Consequently, forgo significantly more earnings savings. (JEL D13, D14, J12, O12)