Effects of individual development accounts on asset purchases and saving behavior: Evidence from a controlled experiment

A-Tier
Journal: Journal of Public Economics
Year: 2008
Volume: 92
Issue: 5-6
Pages: 1509-1530

Authors (6)

Mills, Gregory (not in RePEc) Gale, William G. (Brookings Institution) Patterson, Rhiannon (not in RePEc) Engelhardt, Gary V. (not in RePEc) Eriksen, Michael D. (University of Cincinnati) Apostolov, Emil (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 6 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We evaluate the first controlled field experiment on Individual Development Accounts (IDAs). Including their own contributions and matching funds, treatment group members in the Tulsa, Oklahoma program could accumulate $6750 for home purchase or $4500 for other qualified uses. Almost all treatment group members opened accounts, but many withdrew all funds for unqualified purposes. Among renters at the beginning of the experiment, the IDA increased homeownership rates after 4 years by 7-11 percentage points and reduced non-retirement financial assets by $700-$1000. The IDA had almost no other discernable effect on other subsidized assets, overall wealth, or poverty rates.

Technical Details

RePEc Handle
repec:eee:pubeco:v:92:y:2008:i:5-6:p:1509-1530
Journal Field
Public
Author Count
6
Added to Database
2026-01-25