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As Expected, There Are Unexpected Costs

Health & Psychology United States of America

Credit: KMR Photography

Poverty unquestionably impacts an individual’s outcomes; behavioral economic insights can help mitigate the impact. The current proposal seeks to address a fundamental question: How does the inclusion of a category that accounts for miscellaneous one-time costs (i.e., different one-time costs that happen every month and are therefore hard to categorize) affect savings? More generally, are mental accounts malleable?

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