Saving for Multiple Financial Needs: Evidence from Lockboxes and Mobile Money in Malawi

73 Pages Posted: 28 Apr 2020

See all articles by Shilpa Aggarwal

Shilpa Aggarwal

Indian School of Business (ISB), Hyderabad

Valentina Brailovskaya

University of California, Santa Cruz

Jonathan Robinson

University of California, Santa Cruz

Date Written: April 2020

Abstract

We test whether the provision of multiple labeled savings accounts affects savings and downstream outcomes in an experiment with 761 microentrepreneurs in urban Malawi. Treatment respondents received one or multiple savings accounts, in the form of lockboxes or mobile money. We find that while providing additional boxes increased savings by 40%, technical issues marred the efficacy of a second mobile money account. Both types of accounts had impacts on downstream outcomes, including farming decisions and credit extended to customers. We do not detect differential downstream effects by the number of accounts.

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Suggested Citation

Aggarwal, Shilpa and Brailovskaya, Valentina and Robinson, Jonathan, Saving for Multiple Financial Needs: Evidence from Lockboxes and Mobile Money in Malawi (April 2020). NBER Working Paper No. w27035, Available at SSRN: https://ssrn.com/abstract=3586167

Shilpa Aggarwal (Contact Author)

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

Valentina Brailovskaya

University of California, Santa Cruz

1156 High St
Santa Cruz, CA 95064
United States

Jonathan Robinson

University of California, Santa Cruz ( email )

1156 High St
Santa Cruz, CA 95064
United States

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