How Important Is Temptation Spending? Maybe Less than We Thought
Abstract Temptation plays a key role in theoretical work on spending and saving in developing countries. The limited empirical evidence on its importance, however, suggests that cash transfers do not induce increases in temptation spending. This paper expands the evidence base by studying the effect...
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Veröffentlicht in: | The World Bank economic review 2022-05, Vol.36 (2), p.433-454 |
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Temptation plays a key role in theoretical work on spending and saving in developing countries. The limited empirical evidence on its importance, however, suggests that cash transfers do not induce increases in temptation spending. This paper expands the evidence base by studying the effect of randomized exposure to temptation on spending decisions in rural Malawi. Consistent with the cash transfer literature, a more tempting environment does not induce significant changes in temptation spending. However, the magnitudes of both temptation spending levels and the treatment effects are somewhat sensitive to the definition of temptation spending used. This paper examines the potential factors that may be driving these null results, and suggests that future research may find a limited role for temptation in the economic decisions of the poor. |
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Temptation plays a key role in theoretical work on spending and saving in developing countries. The limited empirical evidence on its importance, however, suggests that cash transfers do not induce increases in temptation spending. This paper expands the evidence base by studying the effect of randomized exposure to temptation on spending decisions in rural Malawi. Consistent with the cash transfer literature, a more tempting environment does not induce significant changes in temptation spending. However, the magnitudes of both temptation spending levels and the treatment effects are somewhat sensitive to the definition of temptation spending used. This paper examines the potential factors that may be driving these null results, and suggests that future research may find a limited role for temptation in the economic decisions of the poor.</description><identifier>ISSN: 0258-6770</identifier><identifier>EISSN: 1564-698X</identifier><identifier>DOI: 10.1093/wber/lhab027</identifier><identifier>PMID: 35572393</identifier><language>eng</language><publisher>United States: Oxford University Press</publisher><subject>Bedeutung/Rolle ; Conditional Cash Transfer Programme ; Datenaufbereitung ; Konsum der privaten Haushalte ; Konsumverhalten ; Malawi ; Sozialhilfe ; Sozialleistungen</subject><ispartof>The World Bank economic review, 2022-05, Vol.36 (2), p.433-454</ispartof><rights>The Author(s) 2022. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. 2022</rights><rights>World Bank</rights><rights>The Author(s) 2022. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK.</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c4357-97f25363dfc8d5057a74f6cdf91a46f998e4e2490d8433e6ade51ad370d01c403</citedby><cites>FETCH-LOGICAL-c4357-97f25363dfc8d5057a74f6cdf91a46f998e4e2490d8433e6ade51ad370d01c403</cites><orcidid>0000-0003-3576-2833</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>230,314,776,780,881,1578,27901,27902</link.rule.ids><backlink>$$Uhttps://www.ncbi.nlm.nih.gov/pubmed/35572393$$D View this record in MEDLINE/PubMed$$Hfree_for_read</backlink></links><search><creatorcontrib>Brune, Lasse</creatorcontrib><creatorcontrib>Kerwin, Jason T</creatorcontrib><creatorcontrib>Li, Qingxiao</creatorcontrib><title>How Important Is Temptation Spending? Maybe Less than We Thought</title><title>The World Bank economic review</title><addtitle>World Bank Econ Rev</addtitle><description>Abstract
Temptation plays a key role in theoretical work on spending and saving in developing countries. The limited empirical evidence on its importance, however, suggests that cash transfers do not induce increases in temptation spending. This paper expands the evidence base by studying the effect of randomized exposure to temptation on spending decisions in rural Malawi. Consistent with the cash transfer literature, a more tempting environment does not induce significant changes in temptation spending. However, the magnitudes of both temptation spending levels and the treatment effects are somewhat sensitive to the definition of temptation spending used. This paper examines the potential factors that may be driving these null results, and suggests that future research may find a limited role for temptation in the economic decisions of the poor.</description><subject>Bedeutung/Rolle</subject><subject>Conditional Cash Transfer Programme</subject><subject>Datenaufbereitung</subject><subject>Konsum der privaten Haushalte</subject><subject>Konsumverhalten</subject><subject>Malawi</subject><subject>Sozialhilfe</subject><subject>Sozialleistungen</subject><issn>0258-6770</issn><issn>1564-698X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2022</creationdate><recordtype>article</recordtype><recordid>eNp9kE1v1DAURS0EokNhxxp5RVkQ-hx_xZtSVAEdaRALBsHOcmJnkpLYwU4Y9d-TKtNSWLB6i3d079VB6DmBNwQUPd2XLp52jSkhlw_QinDBMqGK7w_RCnJeZEJKOEJPUroCIIzk8BgdUc5lThVdofPLsMfrfghxNH7E64S3rh9GM7bB4y-D87b1u7f4k7kuHd64lPDYGI-_ObxtwrRrxqfoUW265J4d7jH6-uH99uIy23z-uL54t8kqRrnMlKxzTgW1dVVYDlwayWpR2VoRw0StVOGYy5kCWzBKnTDWcWIslWCBVAzoMTpbcoep7J2tnB-j6fQQ297Eax1Mq__--LbRu_BLKyhyztgc8OoQEMPPyaVR922qXNcZ78KUdC4EJwRIXszo6wWtYkgpuvquhoC-ka5vpOuD9Bl_cX_aHXxreQbwArgq-Db9SStAgmKUiBl5uSD7EDtbGv9DX4Up-lnpv2UnCxim4f-zfgPhaqSm</recordid><startdate>202205</startdate><enddate>202205</enddate><creator>Brune, Lasse</creator><creator>Kerwin, Jason T</creator><creator>Li, Qingxiao</creator><general>Oxford University Press</general><general>World Bank</general><scope>OQ6</scope><scope>NPM</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>7X8</scope><scope>5PM</scope><orcidid>https://orcid.org/0000-0003-3576-2833</orcidid></search><sort><creationdate>202205</creationdate><title>How Important Is Temptation Spending? Maybe Less than We Thought</title><author>Brune, Lasse ; Kerwin, Jason T ; Li, Qingxiao</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4357-97f25363dfc8d5057a74f6cdf91a46f998e4e2490d8433e6ade51ad370d01c403</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2022</creationdate><topic>Bedeutung/Rolle</topic><topic>Conditional Cash Transfer Programme</topic><topic>Datenaufbereitung</topic><topic>Konsum der privaten Haushalte</topic><topic>Konsumverhalten</topic><topic>Malawi</topic><topic>Sozialhilfe</topic><topic>Sozialleistungen</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Brune, Lasse</creatorcontrib><creatorcontrib>Kerwin, Jason T</creatorcontrib><creatorcontrib>Li, Qingxiao</creatorcontrib><collection>ECONIS</collection><collection>PubMed</collection><collection>CrossRef</collection><collection>MEDLINE - Academic</collection><collection>PubMed Central (Full Participant titles)</collection><jtitle>The World Bank economic review</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Brune, Lasse</au><au>Kerwin, Jason T</au><au>Li, Qingxiao</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>How Important Is Temptation Spending? Maybe Less than We Thought</atitle><jtitle>The World Bank economic review</jtitle><addtitle>World Bank Econ Rev</addtitle><date>2022-05</date><risdate>2022</risdate><volume>36</volume><issue>2</issue><spage>433</spage><epage>454</epage><pages>433-454</pages><issn>0258-6770</issn><eissn>1564-698X</eissn><abstract>Abstract
Temptation plays a key role in theoretical work on spending and saving in developing countries. The limited empirical evidence on its importance, however, suggests that cash transfers do not induce increases in temptation spending. This paper expands the evidence base by studying the effect of randomized exposure to temptation on spending decisions in rural Malawi. Consistent with the cash transfer literature, a more tempting environment does not induce significant changes in temptation spending. However, the magnitudes of both temptation spending levels and the treatment effects are somewhat sensitive to the definition of temptation spending used. This paper examines the potential factors that may be driving these null results, and suggests that future research may find a limited role for temptation in the economic decisions of the poor.</abstract><cop>United States</cop><pub>Oxford University Press</pub><pmid>35572393</pmid><doi>10.1093/wber/lhab027</doi><tpages>22</tpages><orcidid>https://orcid.org/0000-0003-3576-2833</orcidid><oa>free_for_read</oa></addata></record> |
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source | Oxford University Press Journals All Titles (1996-Current); Alma/SFX Local Collection |
subjects | Bedeutung/Rolle Conditional Cash Transfer Programme Datenaufbereitung Konsum der privaten Haushalte Konsumverhalten Malawi Sozialhilfe Sozialleistungen |
title | How Important Is Temptation Spending? Maybe Less than We Thought |
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