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Randomization for Causality, Ethnography for Mechanisms: Illiquid Savings for Liquor in an Autarkic Society

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Listed:
  • Ricardo Godoy
  • Dean Karlan
  • Jonathan Zinman

Abstract

What should researchers do when confronted with surprising results? Financial access innovations usually leave “temptation” spending unaffected or reduced. However, we found that promotion of savings lockboxes in a largely autarkic society increased alcohol consumption and blood pressure, despite no one reporting intentions to save for alcohol. To probe mechanisms that could explain this pattern, we then used ethnographic methods, including direct observations of drinking (“scans”) and debriefing interviews to discuss the earlier trial results. We learn that sponsoring drinks confers prestige, but the stigma attached to drinking by outsiders likely discouraged reporting intentions to save for it.

Suggested Citation

  • Ricardo Godoy & Dean Karlan & Jonathan Zinman, 2021. "Randomization for Causality, Ethnography for Mechanisms: Illiquid Savings for Liquor in an Autarkic Society," NBER Working Papers 29566, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29566
    Note: DEV EH LS PE
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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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