We examine the effects of presentation and information on the take-up
of financial subsidies for retirement saving in a large randomized
experiment carried out with H&R Block. The subsidies raise take-up
and contributions with larger effects when the subsidy is characterized
as a matching contribution rather than an equivalent-value tax
credit (or cash back), and when filers are informed before the tax
season about the subsidy. The results imply that both pure incentives
and the presentation of those incentives affect consumer choices.
(JEL D14, H24, H31, J26)
"Details Matter: The Impact of Presentation and Information on the Take-Up of Financial Incentives for Retirement Saving."
American Economic Journal: Economic Policy,
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Fiscal Policies and Behavior of Economic Agents: Household
Retirement; Retirement Policies