ready to forgo interest on rigid – or commitment – savings accounts to discipline their future selves. On the other, our … stylized facts from Bangladesh show that microfinance institutions pay a premium on commitment savings with respect to flexible … savings. To address this puzzle, we build an equilibrium model in which a monopolistic bank offers flexible and commitment …

credit constraints, limited foresight, and partial commitment. …

This paper studies if external commitment devices are effectively capable of helping agents to reduce their consumption … ambiguous effects on individuals' welfare. First, hyperbolic agents purchase commitment devices less often that they wish to … mild level of addiction, commitment devices effectively reduce consumption and improve health status. However, for severe …

there is a loss from taxation, government intervention is needed only if the level of temptation is sufficiently high. For … high levels of temptation, free compulsory education or vouchers are optimal, whereas price subsidies may be optimal for … intermediate levels of temptation. …