Does commitment savings alter seasonal poverty dynamics among the ultra-poor? Evidence from high-frequency data

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Seminar

Date & time

Tuesday 12 March 2024
2.00pm–3.30pm

Venue

Online Zoom

Speaker

Abu Shonchoy, Florida International University

Can time-locked commitment-saving (TLCS) ahead of lean season alter consumption downfalls among the ultra-poor? We collected 36 rounds of bi-weekly household panel data over two-years and conducted a savings experiment in the second year by randomly allocating TLCS accounts to households with either temporary savings subsidy (T1) or prevailing market interest rate (T2). T1 group doubles the formal savings, resulted in higher protein intake and increased food and non-food expenditure by 8.6-12.6% during the lean season. T2 group shows no discernable impacts. These results suggest TLCS with subsidy reward for encouraging savings could be a viable tool tackling seasonal hunger.

Updated:  19 May 2024/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team