Benefit Disclosure in Financial Choices – A Field Experiment in Vietnam

Researcher: Han Huynh, PhD Student in Economics

This project aims to use a randomized controlled trial (RCT) to investigate two broad reasons why financial education as documented in the literature has been ineffective. On one hand, we may attribute the failure of financial education to the learners: consumers might not fully appreciate the value of learning, and thereby, do not put in effort to learn. On the other hand, the fault may lie with the educators: those designing education have not been able to create syllabi good enough to elevate learners’ ability to make better financial choices. To tease out the two effects, this RCT has a two‐by-two design in which subjects are randomly assigned to the disclosure treatment, which emphasizes the gains from learning, and the education treatment, which teaches participants how to use financial products. To measure the effects of these treatments, both survey data and incentivized choices are used.

A working version of this paper is available here.