Time-Inconsistency and Savings: Experimental Evidence from Low-income Tax Filers

Income%20taxThis paper by Damon Jones and Aprajit Mahajan describes a pilot version of a field experiment designed to test theories of time inconsistency (a model of quasi-hyperbolic discounting) in the context of a savings decision made by low-income tax filers. By estimating the effect of impatience on savings decisions, the results of the study can be used to improve the design of savings incentives for this population, and evaluate the welfare effects of these savings programs.

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