Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227767 
Year of Publication: 
2020
Series/Report no.: 
DIW Discussion Papers No. 1919
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This study examines the effect of a soft commitment device in the form of a savings goal calendar on savings for small business owners in Kampala, Uganda. We run a randomized controlled trial (RCT) under which the treatment group receives a calendar designed to set savings goals and to make a plan to reach this goal. The control group is given a plain calendar. We find no average effect on savings, but show that present-biased individuals save more when given the calendar. Further examinations indicate that present-biased individuals are more likely to use the calendar, suggesting that, in line with theory, present-biased individuals have a demand.
Subjects: 
Soft Commitment
Savings
Time Preferences
Small Business Growth
JEL: 
O12
D14
D22
C93
Document Type: 
Working Paper

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