Microfinance Gateway>Savings Policy and Decision-making in Low-income Households

affiliate language sites: Français عربي Español

Home

Library

Jobs

Training and Events

Organizations

Consultants

Library » Savings Policy and Decision-making in Low-income Households

Savings Policy and Decision-making in Low-income Households
2009, Mullainathan, S. & Shafir, E.

Guidelines for design and regulation of financial services

This paper uses empirical research on judgement and decision making for a behavioural analysis of the economic conditions of the poor.

Theories about poverty can typically be categorized as those that regard the behaviour of the poor as calculated adaptations to prevailing circumstances, or those that view them as emanating from a culture of poverty that is rife with deviant values. The paper proposes a third perspective that considers the behavioural patterns of the poor as:

Being neither perfectly calculating nor especially deviant;
Exhibiting fundamental attitudes and natural proclivities that are similar to other people, but are manifested in more pronounced ways.

This third perspective has implications for regulation and design of financial services for the poor. It implies that the poor are neither irrational nor in need of change. Instead, it is the context in which people function, ranging from financial institutions, benefit programs and the design of default structures to the availability of child care and transportation that needs careful attention and constructive work.

Add Review


*First Name:		*Last Name:
Organization:
*Email:
*Country:
(rollover stars to select rating)
Review Title:

Review Text:
I do not want my name, email, or organization to appear with my review. (Country will always appear with posted reviews.)

By clicking "Submit" you confirm that you have read and consent to our Privacy Policy and Terms and Conditions.

Download this Document

Journal Volume/Pages:
26

Publisher(s):
Financial Access Initiative
Innovations for Poverty Action