IPA President Dean Karlan guest posts on the Nudge blog to share a story about how an "anti-nudge" in his rental car almost side-tracked a trip to visit the Microcredit Impact Study in Northern Mexico...
Kristof (again!) has a nice blog post about the tradeoff between consuming things we think we want, at the expense of not giving to charities to help people who struggle for basic needs. Very much like Peter Singer's famous lake analog
Much of the promise of microfinance comes from the fact that people can get loans even if they do not have access to traditional physical collateral such as a house. The idea that people are trustworthy enough to repay loans even without the threat of losing their property makes for an uplifting story, but it is not always true. Guarantors are understandably upset when someone does not repay what they owe, and often try to take something of value from the debtor – such as a gas tank – in order to pay off what they had to guarantee.
Recent articles in the Wall Street Journal and Slate Magazine have highlighted work by IPA researchers that has found the effectiveness of text message reminders in encourage people to save. (Check out the project here, here, and here!)