Peer effects in adolescents' saving behavior

Project Lead: Kerstin Grosch
Team: Sabine Neuhofer, Katharina Reitsamer
Duration: February 2021 – December 2023
Funding: OeNB (Project Number 18659)

In real life, the saving behavior of peers is much more difficult to observe than consumption behavior. What does it mean to make savings behavior of peers also visible? How do peers influence other people's savings behavior? We examine these questions by using theories from behavioral economics and by applying experimental methods. It is important that already young people learn how to manage their money in ways that allow to buffer (potentially) future economic shocks. Therefore, this study focuses on adolescents. Behavior and preferences are shaped early on and are still malleable at a young age. Moreover, young people are about to earn a self-managed income and, thanks to the class/school association, natural surroundings of peers are available for the investigation of our research questions.