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 BEHAVIOR CHANGE

Commitments to Save: A Field Experiment in Rural Malawi.

Brune et al. (2011)
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Summary by 
Mark Egan

The authors examined whether commitment devices could encourage savings amongst Malawian farmers. To this end they created two conditions offering ‘ordinary’ and ‘ordinary & commitment’ savings accounts to the farmers. Commitment accounts allowed savers to restrict access to their own money until a designated date. The Control group was not offered any special account. Only the commitment accounts had significant impacts on savings, later allowing those farmers to purchase 26% more agricultural inputs than the Control.