OCGSE Seminars

We conduct a stated-choice experiment in which we analyze the ability of respondents to make choices between front and back-loaded tax-sheltered savings accounts in a well-specified environment. We embed a randomized financial education intervention within this experiment to assess whether respondents make better choices when provided with information. We then find that, relative to a control group, our financial education treatments improve general understanding of the tax implications of tax-deferred and post-tax saving accounts and increase the quality of choices made. We find substantial welfare gains from this intervention.