Sometimes we need a little push to do things that we know are good for us. We find a “gym buddy” to somehow commit to work out. Or we bet money with a friend on who will be able to spend a month without smoking. When it comes to saving, these nudges are also important for many, even if they are not aware of it. Previous posts explored the main reasons why people in Latin … [Read more...] about Helping Latin Americans Save
Microeconomics and Competitiveness
Want People to Pay Their Taxes? Try a Visit
For years, policy makers in Latin America and the Caribbean have struggled with the immense and chronic problem of tax evasion, which averages close to 50% in many countries and limits governments' ability to spend on schools, hospitals and other critical needs. The problem relates not only to the difficulty of finding tax delinquents. It has to do with the difficulty of … [Read more...] about Want People to Pay Their Taxes? Try a Visit
Five Reasons Why Latin Americans Save Less
Are Latin Americans less prone to save? When compared to regions with similar levels of economic development, why does Latin America fare poorly in terms of saving rates? Though several factors shape saving rates, a few are particularly important in generating these gaps at the household level. In particular, past experiences, psychological traits, and even genes or language … [Read more...] about Five Reasons Why Latin Americans Save Less
Turning a Piggy Bank into a Savings Account in Peru
A piggy bank is a classic childhood favorite, one that has endured for generations. In the last 20 years, many children were encouraged to put away their pennies after getting to know the piggy bank Hamm, a character in the Toy Story franchise. But what may feel like a game to kids is in fact teaching them a very important habit that can set a country on a path to development: … [Read more...] about Turning a Piggy Bank into a Savings Account in Peru
Raising Tax Revenues on a Tight Budget: A Field Experiment in the Pampas
Policymakers may have big plans like extending a highway or starting a new social assistance program. Then again, they may have more modest plans such as meeting payrolls or maintaining existing infrastructure and levels of service. Realizing any of those plans requires a dependable stream of revenue, usually including taxes on individuals’ income and property. In an ideal … [Read more...] about Raising Tax Revenues on a Tight Budget: A Field Experiment in the Pampas