Household Behavior Below the Zero Lower Bound

Last registered on January 13, 2025
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Pre-Trial

Trial Information

General Information

Title
Household Behavior Below the Zero Lower Bound
RCT ID
AEARCTR-0015155
Initial registration date
January 11, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
January 13, 2025, 2:00 PM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Denmark
Region

Primary Investigator

Name
Johannes Wohlfart
Affiliation
University of Cologne
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Other Primary Investigator(s)

PI Name
Asger Lau Andersen
PI Affiliation
University of Copenhagen
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PI Name
Niels Johannesen
PI Affiliation
Oxford University
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PI Name
Jens Brøndum Petersen
PI Affiliation
University of Copenhagen
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PI Name
Sonja Settele
PI Affiliation
University of Cologne
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Additional Trial Information

Status
In development
Start date
2025-01-13
End date
2025-05-01
Keywords
Behavior, Finance & Microfinance
Additional Keywords
JEL code(s)
E52, E71, G51
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We conduct a survey with a sample from the Danish general population to understand the mechanisms underlying households' responses to negative interest rates on bank deposits.
External Link(s)

Registration Citation

Citation
Andersen, Asger Lau et al. 2025. "Household Behavior Below the Zero Lower Bound." AEA RCT Registry. January 13. https://doi.org/10.1257/rct.15155-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention (Hidden)
We provide our respondents with hypothetical scenarios in which interest rates on bank deposits fall. Respondents are randomized into a scenario where interest rates fall from zero to negative after a threshold amount, or into scenarios with interest rate changes within the non-negative domain. We ask open-ended survey questions to understand mechanisms behind potential adjustments in consumption spending, stockholdings, cash holdings and holdings in pension accounts in response to such a change in interest rates.
Intervention Start Date
2025-01-13
Intervention End Date
2025-05-01

Primary Outcomes

Primary Outcomes (end points)
Motives underlying behavioral adjustments to changes in interest rates, as measured in open-ended explanations.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We randomize our respondents into different hypothetical scenarios describing changes in interest rates on bank deposits, and elicit how and why they would adjust their financial and spending decisions.
Experimental Design Details
Randomization Method
Computer.
Randomization Unit
Individual.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
About 10,000 individual respondents, depending on the response rate.
Sample size: planned number of observations
About 10,000 individual respondents, depending on the response rate.
Sample size (or number of clusters) by treatment arms
8,000 respondents in negative rate arm, 1,000 in zero lower bound arm, 1,000 in positive rate arm.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
University of Copenhagen
IRB Approval Date
2024-08-07
IRB Approval Number
N/A
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials