Behavioural Insights Projects

Are there ways to limit the accrual of excessive loan amounts by students? A letter sent to students with student loans who have received a supplementary grant increases the likelihood of them reducing their loan amounts. This increased likelihood translates to an annual average decrease of over € 150 in loan amounts for students receiving both a supplementary grant and a loan. Why this experiment was conducted: award of supplementary grant sometimes has little or no impact on loan…

Institution: Netherlands Ministry of Education, Culture and Science

PROJECT SUMMARY ideas42 and Busara Center for Behavioral Economics worked with a major bank and telecommunications company in Nigeria to send behaviorally-informed SMS messages to customers to increase their use of mobile bank accounts. IMPACT Effects varied by message and audience; notably, injunctive norm messages led to a 45 percent increase in the number of clients making deposits among females with active accounts, from 0.82% to 1.81%. RESULTS Design ideas42 and the Busara Center for…

Institution: Busara Center for Behavioral Economics

Team: Ideas42

Institution: Privy Council Office

Team: Impact and Innovation Unit (IIU)

'Returning to employment? Don't forget about your benefits!' When individuals receiving benefits return to employment having been registered as unemployed, it is important that they report the change in their income to the Benefits Unit on time, to avoid repayment demands. Why do individuals not comply with this notification requirement? And what interventions could improve compliance? A revised letter from the UWV Employee Insurance Agency and an additional page on the Benefits Unit website…

Institution: Netherlands Employee Insurance Agency (UWV)

The purpose of this study is to better understand Canadian's perceptions, knowledge, and decision-making related to home energy labels. It will build on the findings of an initial survey that explored home energy label design elements and information content, as well as perceptions of the current EnerGuide label for homes. Extending this work, the present study will examine how different rating presentations may affect comprehension of home energy performance and which home energy label design…

Institution: Privy Council Office

Team: Impact and Innovation Unit (IIU)

Challenge Tax delinquencies are a major problem for most tax administrations in the world. In Colombia, the National Accountant Office estimated the total outstanding debt to the National Tax Agency at $2.5 billion, which represents about 20 percent of estimated total tax evasion in 2014. Finding ways to reduce tax delinquencies is critical for both fiscal and equity considerations. A previous study compared messages about due liabilities delivered through three channels (letter, email, or…

Institution: Inter-American Development Bank (IDB)

Team: IDB Behavioral Economics Group

Methods Two preregistered randomized controlled trials (N = 253 and N = 674) measured consumption in a lab and the home environment. Cues were salient, labeled stripes that demarcated single portions. Participants were randomized to cue condition or control. Consumption was measured without awareness. Results The main preregistered effect of the visual cue was not statistically significant. There was some variation by subgroup. In Study 1, men were more likely to eat the whole can of potato…

Institution: Economic and Social Research Institute (ESRI)

Team: ESRI Behavioural Research Unit

This experiment involved making the information on the WBSO website clearer and more personally relevant to entrepreneurs. The visibility of the call-to-action was also enhanced. The study showed that entrepreneurs were prompted to spend more time exploring the possibilities offered by the Research and Development (Promotion) Act (WBSO) and that they read the information more carefully. Why this experiment was conducted: number of new applications below expectations The Research and Development…

Institution: Netherlands Ministry of Economic Affairs and Climate Policy and Netherlands Enterprise Agency (RVO)

Saving while being overdrawn costs consumers money. The interest they have to pay is far more than the interest they receive. An experiment tested two interventions aimed at encouraging consumers to use their savings to clear any overdraft, by pre-entering a repayment amount and giving explicit information about costs. These interventions lead to better choices amongst many, although not yet all, consumers. Why this experiment was conducted: saving while being overdrawn costs Dutch citizens…

Institution: Dutch Authority for the Financial Markets (AFM)

Challenge Conditional cash transfers are funds given to households if they fulfill certain requirements, such as sending their children to school. These cash transfers can boost households’ investment in health and education; however, they are expensive, and it is often complicated to track and enforce compliance with the requirements. Removing the conditions may make cash transfer programs more cost effective by decreasing administrative costs, while still providing a nudge to increase school…

Institution: World Bank

Team: eMBeD, Mind Behaviour and Development team