What Might We Forget? An Experiment in South Africa Showing When Reminders May Increase Attention and Decrease Savings

22 Pages Posted: 23 May 2023

See all articles by amy jansen

amy jansen

University of Groningen

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance; Wageningen University and Research (WUR) - Development Economics Group

Abstract

Using administrative data on the savings behaviour of 31,246 South Africans at the onset of COVID, this experimental study demonstrates how reminders can decrease savings in a crisis. Building on an attention-based model for the effect of reminders, it shows how if individuals have forgotten prior savings, a savings reminder can increase dis-saving when received at a time when those savings may be needed. While this may still be utility enhancing, this study demonstrates that focusing on an instrumental variable like savings can miss the full potential impact of an attention-enhancing technology like reminders.

Keywords: Savings, reminders, south africa

Suggested Citation

jansen, amy and Lensink, Robert, What Might We Forget? An Experiment in South Africa Showing When Reminders May Increase Attention and Decrease Savings. Available at SSRN: https://ssrn.com/abstract=4449116 or http://dx.doi.org/10.2139/ssrn.4449116

Amy Jansen

University of Groningen ( email )

Robert Lensink (Contact Author)

University of Groningen - Department of Economics, Econometrics and Finance ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Wageningen University and Research (WUR) - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

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