Using Vividness Interventions to Improve Financial Decision Making

2018 ◽  
Vol 5 (2) ◽  
pp. 209-215 ◽  
Author(s):  
Hal E. Hershfield ◽  
Elicia M. John ◽  
Joseph S. Reiff
Keyword(s):  
Well Being ◽  
Theoretical Background ◽  
Choice Architecture ◽  
Defined Contribution ◽  
Retirement Plans ◽  
Policy Makers ◽  
Financial Decisions ◽  
Trade Offs ◽  
Policy Work ◽  
Financial Decision

Prior policy work has effectively eased some financial problems that Americans face: Automatic enrollment in retirement saving accounts has drastically increased the number of workers who participate in defined contribution retirement plans. Yet, such choice architecture interventions cannot always be implemented, and even when they can, they are beholden to whatever decisions the choice architect made and, in any case, may not go far enough in helping maximize financial well-being over time. Additional interventions thus need to complement already successful choice architecture ones. Namely, because many financial decisions involve trade-offs between present and future selves, with the present self often being prioritized, this review highlights interventions that make the future self more vivid to decision makers. We discuss the theoretical background underlying such interventions, the factors that may make vividness interventions more or less effective in policy contexts, and possible future directions for researchers and policy makers.

The Illusion of Wealth and Its Reversal

2016 ◽  
Vol 53 (5) ◽  
pp. 804-813 ◽  
Author(s):  
Daniel G. Goldstein ◽  
Hal E. Hershfield ◽  
Shlomo Benartzi
Keyword(s):  
Opposite Effect ◽  
Environmental Issues ◽  
Information Architecture ◽  
Choice Architecture ◽  
Monthly Income ◽  
Policy Makers ◽  
Financial Decision Making ◽  
The World ◽  
Financial Decision ◽  
Retirement Wealth

Research on choice architecture is shaping policy around the world, touching on areas ranging from retirement economics to environmental issues. Recently, researchers and policy makers have begun paying more attention not just to choice architecture but also to information architecture, or the format in which information is presented to people. In this article, the authors investigate information architecture as it applies to consumption in retirement. Specifically, in three experiments, they examine how people react to lump sums versus equivalent streams of monthly income. Their primary question of interest is whether people exhibit more or less sensitivity to changes in retirement wealth expressed as lump sums (e.g., $100,000) or monthly equivalents (e.g., $500 per month for life). They also test whether people exhibit an “illusion of wealth,” by which lump sums seem more adequate than monthly amounts in certain conditions, as well as the opposite effect, in which lump sums seem less adequate. They conclude by discussing how format-dependent perceptions of wealth can affect policy and consumers’ financial decision making.

Effects of Perceived Scarcity on Financial Decision Making

2018 ◽  
Vol 37 (1) ◽  
pp. 68-87 ◽  
Author(s):  
Laurel Aynne Cook ◽  
Raika Sadeghein
Keyword(s):  
Decision Making ◽  
Financial Risk ◽  
Qualitative Data ◽  
Future Research ◽  
Policy Makers ◽  
Welfare Impact ◽  
Financial Decisions ◽  
Financial Decision ◽  
Influence Perceptions ◽  
Method Approach

How are financial decisions compromised as scarcity increases? Extant research focuses mostly on the consequences of financial scarcity; moreover, this factor is treated simply as a lack of liquidity. Using a mixed-method approach, the authors investigate the dimensions of perceived scarcity and the ways they work in tandem to negatively influence perceptions and decisions. Internal influences (including perceived consequences) and external influences (including decreased lending options) lead to results described in this article as the “triple scarcity effect.” Experimental results show how perceived financial scarcity undermines loan decisions, particularly for consumers at the greatest financial risk. Next, qualitative data collected from the Consumer Financial Protection Bureau are used for a between-method triangulation of the earlier findings. Understanding the multidimensionality of perceived financial scarcity is important for designing preventive measures that improve decisions (e.g., not reborrowing) and decision making (e.g., accurately calculating cost). Results from two interventions demonstrate how these improvements are made when consumers' perceptions of scarcity are reduced. Finally, the authors discuss the welfare impact for lenders, marketers, and policy makers, and they offer an agenda for future research.

scholarly journals Monitoring local well-being in environmental interventions: a consideration of practical trade-offs

Oryx ◽  
2015 ◽  
Vol 51 (1) ◽  
pp. 68-76 ◽  
Author(s):  
B. Palmer Fry ◽  
M. Agarwala ◽  
G. Atkinson ◽  
T. Clements ◽  
K. Homewood ◽  
...  
Keyword(s):  
Internal Validity ◽  
Well Being ◽  
Quantitative Information ◽  
Project Design ◽  
Cultural Impact ◽  
Environmental Interventions ◽  
Policy Makers ◽  
Trade Offs ◽  
High Level ◽  
National Governments

AbstractWithin the field of environmental management and conservation, the concept of well-being is starting to gain traction in monitoring the socio-economic and cultural impact of interventions on local people. Here we consider the practical trade-offs policy makers and practitioners must navigate when utilizing the concept of well-being in environmental interventions. We first review current concepts of well-being before considering the need to balance the complexity and practical applicability of the definition used and to consider both positive and negative components of well-being. A key determinant of how well-being is operationalized is the identity of the organization wishing to monitor it. We describe the trade-offs around the external and internal validity of different approaches to measuring well-being and the relative contributions of qualitative and quantitative information to understanding well-being. We explore how these trade-offs may be decided as a result of a power struggle between stakeholders. Well-being is a complex, multi-dimensional, dynamic concept that cannot be easily defined and measured. Local perspectives are often missed during the project design process as a result of the more powerful voices of national governments and international NGOs, so for equity and local relevance it is important to ensure these perspectives are represented at a high level in project design and implementation.

Awareness about equity investment among retail investors: a kaleidoscopic view

2017 ◽  
Vol 9 (4) ◽  
pp. 310-324 ◽  
Author(s):  
Jayashree Bhattacharjee ◽  
Ranjit Singh
Keyword(s):  
Well Being ◽  
Future Research ◽  
Policy Makers ◽  
Equity Investment ◽  
Content Type ◽  
Financial Decisions ◽  
Economic Profile ◽  
Secondary Information ◽  
Financial Awareness ◽  
The Impact

Purpose The purpose of this paper is to systematically review the literature published on the various aspects of awareness about equity investment. The paper highlights the major issues and aspects with respect to equity investment awareness. It also aims to raise specific questions for future research. Design/methodology/approach The study is based on secondary information collected primarily through the review of existing literature. Findings It is found that the important determinants of equity awareness are demographic, socio-economic and psychological factors. Financial well-being is attributable largely to financial awareness. Growth of the financial market can be credited to equity awareness. Equity awareness enables an investor to make better financial decisions, to appreciate their rights and responsibilities and to understand and manage the risk as an investor. Practical implications Policy makers can design the equity awareness campaign considering the different demographic and socio-economic factors. While designing such a campaign, the impact and importance of equity awareness should be illustrated, considering their demographic and socio-economic profile. Originality/value This study is the first one using the literature review method in the area of equity investment awareness, in particular, and financial awareness in general. This paper will be useful to researchers, academicians and those working in the area of equity investment awareness and in their understanding about the various aspects of awareness about equity investment. The paper is first of its kind, hence original in nature.

scholarly journals Integrating economic and health evidence to inform Covid-19 policy in low- and middle- income countries

2020 ◽  
Vol 5 ◽  
pp. 272
Author(s):  
Anna Vassall ◽  
Sedona Sweeney ◽  
Edwine Barasa ◽  
Shankar Prinja ◽  
Marcus R Keogh-Brown ◽  
...  
Keyword(s):  
Well Being ◽  
Economic Welfare ◽  
Economic Evidence ◽  
Middle Income ◽  
Policy Makers ◽  
Middle Income Countries ◽  
Trade Offs ◽  
Analytical Approaches ◽  
Economic Well Being ◽  
Low And Middle Income

Covid-19 requires policy makers to consider evidence on both population health and economic welfare. Over the last two decades, the field of health economics has developed a range of analytical approaches and contributed to the institutionalisation of processes to employ economic evidence in health policy. We present a discussion outlining how these approaches and processes need to be applied more widely to inform Covid-19 policy; highlighting where they may need to be adapted conceptually and methodologically, and providing examples of work to date. We focus on the evidential and policy needs of low- and middle-income countries; where there is an urgent need for evidence to navigate the policy trade-offs between health and economic well-being posed by the Covid-19 pandemic.

Penguatan Wilayah Perbatasan: Studi Kasus Pulau Sebatik Kabupaten Nunukan Provinsi Kalimantan Timur

2015 ◽  
Vol 12 (2) ◽  
pp. 110
Author(s):  
Baskoro Wicaksono
Keyword(s):  
Central Government ◽  
Secondary Data ◽  
Well Being ◽  
Research Strategy ◽  
Management Policy ◽  
Infrastructure Development ◽  
Policy Makers ◽  
The Public ◽  
East Kalimantan ◽  
Border Policy

This study describes the border management policy conducted by the central government, provinceof East Kalimantan and Nunukan. Policies such as the establishment of regulatory, institutionalstrengthening, programs and infrastructure development. The policy is getting good responsefrom the elite and the masses. On the other hand policy makers have expectations of localcommunities border synergism Sebatik Island in order to build and develop the border areas so asto break the chain of dependence on Malaysia. The research was conducted in Sebatik Island,East Kalimantan province Nunukan with the formulation of the problem (a) what policies areoriented to maintain borders, (b) How is the public response to government policy, (c) What areyour expectations of policy makers in local communities to regional border. This study usedqualitative methods to phenomenological research strategy. Techniques of data collection in thisstudy using two ways, namely in-depth interviews and secondary data view Results indicate thatthe existing policy of both the central and provincial to district borders do not solve the problembecause it is made on the island of Sebatik with other border regions. The policy does not includelocal knowledge, where it is desperately needed by the people Sebatik. In addition to policies onprograms and infrastructure development of the center, the district adopted a policy of inactionagainst the illegal cross-border trade, which on the one hand against the rules but if enforced thenpeople can not perform economic activities that impact well-being. Policies like this gets a positiveresponse from the public. Expectations for the future border policy is to load local content orlocal knowledge.Keyword: border policy, local knowledge, dependent relationship

scholarly journals The Impact of the COVID-19 Pandemic on the Working Conditions, Employment, Career Development and Well-Being of Refugee Researchers

Societies ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 71
Author(s):  
Ourania Tzoraki ◽  
Svetlana Dimitrova ◽  
Marin Barzakov ◽  
Saad Yaseen ◽  
Vasilis Gavalas ◽  
...  
Keyword(s):  
Online Survey ◽  
Negative Impact ◽  
Well Being ◽  
Appropriate Technology ◽  
Public Authorities ◽  
Policy Makers ◽  
Home Setting ◽  
The Public ◽  
Work From Home ◽  
The Impact

The ongoing ‘refugee crisis’ of the past years has led to the migration of refugee researchers (RRs) to European countries. Due to the COVID-19 pandemic, RRs often had to work from home and/or to continue their social, cultural and economic integration process under new conditions. An online survey carried out to explore the impact of the pandemic on the refugee researchers showed that RRs found it difficult to adapt their everyday working life to the ‘home’ setting. The majority have had neither a suitable work environment at home nor the appropriate technology. Although they stated that they are rather pleased with the measures taken by the public authorities, they expressed concern about their vulnerability due to their precarious contracts and the bureaucratic asylum procedures, as the pandemic has had a negative impact on these major issues. The majority of RRs working in academia seem not to have been affected at all as far as their income is concerned, while the majority of those employed in other sectors became unemployed during the pandemic (58%). Recommendations are provided to the public authorities and policy makers to assist RRs to mitigate the consequences of the pandemic on their life.

scholarly journals Buffer Stock Operations and Well-Being: The Case of Smallholder Farmers in Ghana

2021 ◽  
Author(s):  
Emmanuel Abokyi ◽  
Dirk Strijker ◽  
Kofi Fred Asiedu ◽  
Michiel N. Daams
Keyword(s):  
Stock Price ◽  
Smallholder Farmers ◽  
Well Being ◽  
Buffer Stock ◽  
Least Square ◽  
Subjective Well Being ◽  
Stabilization Policy ◽  
Environmental Aspects ◽  
Policy Makers ◽  
Aid Policy

AbstractThis study investigates the possible causal relationship between buffer stock operations in Ghanaian agriculture and the well-being of smallholder farmers in a developing world setting. We analyze the differences in the objective and subjective well-being of smallholder farmers who do or do not participate in a buffer stock price stabilization policy initiative, using self-reported assessments of 507 farmers. We adopt a two-stage least square instrumental variable estimation to account for possible endogeneity. Our results provide evidence that participation in buffer stock operations improves the objective and subjective well-being of smallholder farmers by 20% and 15%, respectively. Also, with estimated coefficient of 1.033, we find a significant and robust relationship between objective well-being and subjective well-being among smallholder farmers. This relationship implies that improving objective well-being enhances the subjective well-being of the farmers. We also find that the activities of intermediaries decrease both the objective and subjective well-being of farmers. This study demonstrates that economic, social, and environmental aspects of agricultural life could constitute priorities for public policy in improving well-being, given their strong correlation with the well-being of farmers. Based on the results of this study, we provide a better understanding, which may aid policy-makers, that public buffer stockholding operations policy is a viable tool for improving the well-being of smallholder farmers in a developing country.

Psychiatric symptoms among migrants to Malaysia from the southernmost provinces of Thailand

2021 ◽  
pp. 002076402198973
Author(s):  
Kathleen Ford ◽  
Aree Jampaklay ◽  
Aphichat Chamatrithirong
Keyword(s):  
Mental Health ◽  
Psychiatric Symptoms ◽  
Well Being ◽  
Policy Makers ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Working Age ◽  
Self Reporting Questionnaire ◽  
Depth Interviews ◽  
Migrant Groups

Aim: The objective of this paper is to examine the level of psychiatric symptoms and associated factors among Thai migrants from the southernmost Thai provinces of Pattani, Yala, and Narithiwat who are working in Malaysia. Comparisons will be made with the sending population in the southernmost provinces of Thailand. Methods: Data are drawn from survey and in-depth interviews with Thai migrants who are working in Malaysia. Comparisons are made with a probability sample of working age adults in Thailand. The twenty item Self Reporting Questionnaire (SRQ) was the measure of mental health. Results: The study found that the migrants, on average, have normal levels of psychiatric symptoms. However, although about 24% of migrants reported more eight or more symptoms that may indicate a need for evaluation. There are many stressors in their lives including distance from families, reduced social support, legal matters surrounding immigration, and discrimination/exploitation of migrant groups. Conclusion: The study highlights the need for policy makers and non-governmental organizations to give attention to migrants’ mental health, well-being and sustainable livelihoods.

Sign in / Sign up

Export Citation Format

Share Document