Behavioral finance and public policy for enhancing retirement savings
Keywords:
Economic behavior, Government policy, Savings, RetirementAbstract
http://doi.org/10.5281/zenodo.4294870
Behavioral finance has provided useful tools to improve public policy application by acknowledging the existence of systematic errors in decision making. This research analyzes the framing effect and temporal discount theory as strategies to enhance retirement savings under a hypothetical case. 117 graduate students of two public universities from Mexico and Guatemala participated in the study. The first task consisted in a financial literacy survey, and the second consisted in a multiple-choice task presented in profit and loss frames, in which the participant must choose when to withdraw the savings. It was found that, the higher the amount accumulated and the greater the loss frame; the longer participants were willing to wait to withdraw their funds. The results may be useful for improving the design of public policies to increase retirement savings.
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Copyright (c) 2020 David Acevedo Campos, María del Rosario Higuera Torres
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors whose contributions are selected for publication in the scientific multidisciplinary journal Un Espacio para la Ciencia retain their copyright. However, through publication, they authorize the dissemination of their work under the Creative Commons Attribution 4.0 International License.
