A4

In the Philippines, we have continued our global tradition of rigorous, applicable research by building foundational research capacity and conducting evaluations in areas of pressing national concern. Two completed evaluations offer promising insights into everyday issues that affect the lives of the Filipino poor.

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Brief
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February 01, 2017

This paper evaluates a policy intervention designed to attract good political candidates – competent and honest ones – to public service. Inspired by the idea that schooling can act as a screening mechanism, and that non-monetary status awards can be a cost-effective tool to incentivize individuals, we evaluate whether a leadership training workshop with performancebased awards can screen and incentivize good people to serve in public office. In the context of a randomized field experiment among aspirants for the village youth councils in the Philippines, we find that this policy intervention is effective in terms of attracting individuals with abovemedian measures of public service motivation, intellectual ability, integrity, and aspiration.

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Working Paper
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October 26, 2016
English

We implemented a randomized controlled trial among transnational households in the Philippines estimating impacts on financial behaviors of a financial education treatment, a financial access treatment, and the combination of the two. We test whether there are complementarities between financial education and financial access interventions, and also provide insight into the nature of constraints operating in financial services markets. We find no evidence of complementarities between the financial education and financial access treatments. In addition, while we find no evidence of constraints in access to formal credit and savings products, our results do suggest that access constraints exist in the formal insurance market. Impacts on other financial behaviors are suggestive of the importance of information constraints in financial decision-making. These results provide guidance to designers of financial interventions in similar populations.

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Working Paper
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September 22, 2016
English

Asymmetric information can be costly in insurance markets and can even hinder market development, as is the case for most agricultural insurance markets. I study information asymmetries in crop insurance in the Philippines using a randomized field experiment. Using a combination of preference elicitation, a two-level randomized allocation of insurance and detailed data collection, I test for and find evidence of adverse selection, moral hazard and their interaction – that is, selection on anticipated moral hazard behavior. I conclude that information asymmetry problems are substantial in this context and that variations on this experimental design may be useful in future work for identifying interactions between choice and treatment effects.

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Working Paper
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September 07, 2016
English

We worked with two microlenders to test impacts of randomly assigned reminders for loan repayments in the “text messaging capital of the world”. We do not find strong evidence that loss versus gain framing or messaging timing matter. Messages only robustly improve repayment when they include the loan officer’s name. This effect holds for clients serviced by the loan officer previously but not for first-time borrowers. Taken together, the results highlight the potential and limits of communications technology for mitigating moral hazard, and suggest that personal obligation/reciprocity between borrowers and bank employees can be harnessed to help overcome market failures.

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Working Paper
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August 01, 2016
English

We provide evidence from field experiments with three different banks, that reminder messages increase commitment attainment for clients who recently opened commitment savings accounts. Messages that mention both savings goals and financial incentives are particularly effective, while other content variations such as gain versus loss framing do not have significantly different effects. Nor do we find evidence that receiving additional late reminders has an additive effect. These empirical results do not map neatly into existing models, so we provide a simple model where limited attention to exceptional expenses can generate under-saving that is in turn mitigated by reminders.

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Published Paper
Date:
January 19, 2016

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