CREED Seminars Amsterdam

Speaker(s)
Marta Serra Garcia (UC San Diego, United States)
Date
Thursday, 26 June 2014
Location
Amsterdam

We examine the impact of a randomly assigned financial education program on adolescents’ intertemporal choices, using an incentivized experiment with 994 participants. Time inconsistent choices as well as the choices inconsistent with the law of demand become less frequent among treated adolescents, compared to adolescents who did not participate in the program. Further, adolescents’ intertemporal choices in the control group exhibit significant aggregate present-bias, while those in the treatment group do not. Hence, the educational intervention leads to more consistent intertemporal choices, both in the dimension of price (law of demand) and time.