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

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  • Godoy, Ricardo
  • Karlan, Dean
  • Zinman, Jonathan

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

  • Godoy, Ricardo & Karlan, Dean & Zinman, Jonathan, 2022. "Randomization for Causality, Ethnography for Mechanisms: Illiquid Savings for Liquor in an Autarkic Society," CEPR Discussion Papers 16810, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16810
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    Cited by:

    1. Godoy, Ricardo & Bauchet, Jonathan & Behrman, Jere R. & Huanca, Tomás & Leonard, William R. & Reyes-García, Victoria & Rosinger, Asher & Tanner, Susan & Undurraga, Eduardo A. & Zycherman, Ariela, 2024. "Changes in adult well-being and economic inequalities: An exploratory observational longitudinal study (2002–2010) of micro-level trends among Tsimane’, a small-scale rural society of Indigenous Peopl," World Development, Elsevier, vol. 176(C).

    More about this item

    Keywords

    Mixed methods; Randomized evaluation; Native amazonians; Tsimane'; Temptation; Commitment savings;
    All these keywords.

    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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