Work

When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan

Year: 2018

Type: article

Abstract: To inform economists and policymakers about whether the effects of nudges are persistent in one specific context, we study the choice architecture of the Swedish Premium Pension Plan. The data we study consist of all initial choices and subsequent rebalancing activities by the entire population of 7.3 million retirement savers in Sweden during the period 2000 to 2016. Based on our analysis of these data, we conclude that the effects of nudging in this case were surprisingly persistent and seem to last nearly two decades, if not forever.

Source: AEA Papers and Proceedings

DOI: 10.1257/pandp.20181096

Authors: Henrik Cronqvist, Richard H. Thaler, Frank Yu

Institutions: University of Miami, University of Chicago, China Europe International Business School

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3125875964

FWCI: 6.224

Cites: 8

Cited by: 64

Related to: 10