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Obstacles to Domestic Retail Investing in Mexico: An Empirical Study
Last registered on September 30, 2019

Pre-Trial

Trial Information
General Information
Title
Obstacles to Domestic Retail Investing in Mexico: An Empirical Study
RCT ID
AEARCTR-0004801
Initial registration date
September 29, 2019
Last updated
September 30, 2019 1:29 PM EDT
Location(s)
Region
Primary Investigator
Affiliation
University at Albany
Other Primary Investigator(s)
Additional Trial Information
Status
In development
Start date
2019-09-02
End date
2019-10-31
Secondary IDs
Abstract
Stock market investing seems not to be an attractive choice for many people,. Many financial markets remain underdeveloped, including those in Mexico. This project examines a lack of demand for risky financial assets on the part of Mexican savers, in order to better understand the obstacles that prevent them from investing through their own securities markets.

The project administers a survey and vignettes to 1,000 qualified individuals in the Mexico City area. The survey will consist of Likert scale questions that examine the importance that people place upon various factors in making their decision to invest. These questions then lead to the core of the project - a series of vignettes (short fact patterns presented in a few sentences) which vary key features that might be found in a typical investment account. The vignettes isolate the effects of those features ("factors") to estimate whether changing the nature of that factor is correlated with a change in the probability of investing.


This project contemplates a randomized trial. We establish as a control an account which contains four factors that be viewed as "restrictive" and then vary these factors with less restrictive outcomes. Thus, we have four factors with two outcomes each, for a total of 16 vignettes. The restrictive account will be our control, and the remaining 15 variations will be treatments. In each, respondents will be asked whether the features described in their vignette makes them more or less likely to establish a similar account.

Survey participants will be randomly assigned to one of these 16 vignettes [each vignette will have a sample size of about 65 respondents], and the mean responses as to the likelihood of investing will be compared to the alternatives. In this way, we hope to directly identify those features that potential investors find important and offer guidance to policymakers and others as to how to tailor their products to overcome those obstacles to investing and meet this demand.
External Link(s)
Registration Citation
Citation
Bulko, Kenneth. 2019. "Obstacles to Domestic Retail Investing in Mexico: An Empirical Study." AEA RCT Registry. September 30. https://doi.org/10.1257/rct.4801-1.0.
Experimental Details
Interventions
Intervention(s)
This project contemplates a randomized trial, consisting of a survey and associated vignettes. The vignettes serve as the main experimental instrument. Each vignette contains four factors that might be included in a typical investment account. We establish as a control an account which contains those four factors that be viewed as "restrictive" and then vary these factors with less restrictive outcomes. Thus, we have four factors with two outcomes each, for a total of 16 vignettes. The restrictive account will be our control, and the remaining 15 variations will be treatments. In each, respondents will be asked whether the features described in their vignette makes them more or less likely to establish a similar account.

Survey participants will be randomly assigned to one of these 16 vignettes [each vignette will have a sample size of about 65 respondents], and the mean responses as to the likelihood of investing will be compared to the alternatives. In this way, we hope to directly identify those features that potential investors find important and offer guidance to policymakers and others as to how to tailor their products to overcome those obstacles to investing and meet this demand.
Intervention Start Date
2019-10-21
Intervention End Date
2019-10-28
Primary Outcomes
Primary Outcomes (end points)
The increased or decreased probabability of investing in an investment account, as described in the assigned vignette.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
This project contemplates a randomized trial, consisting of a survey and associated vignettes. The vignettes serve as the main experimental instrument. Each vignette contains four factors that might be included in a typical investment account. We establish as a control an account which contains those four factors that be viewed as "restrictive" and then vary these factors with less restrictive outcomes. Thus, we have four factors with two outcomes each, for a total of 16 vignettes. The restrictive account will be our control, and the remaining 15 variations will be treatments. In each, respondents will be asked whether the features described in their vignette makes them more or less likely to establish a similar account.

Survey participants will be randomly assigned to one of these 16 vignettes [each vignette will have a sample size of about 65 respondents], and the mean responses as to the likelihood of investing will be compared to the alternatives. In this way, we hope to directly identify those features that potential investors find important and offer guidance to policymakers and others as to how to tailor their products to overcome those obstacles to investing and meet this demand.
Experimental Design Details
Randomization Method
Randomization done by computer, from a pool of qualified potential respondents.
Randomization Unit
Individual.
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
Each vignette will be presented to 65 respondents.
Sample size: planned number of observations
1,000
Sample size (or number of clusters) by treatment arms
15 in the control group (the most restrictive set of factors) and then 65 in each of the 15 groups exposed to the less restrictive factors.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
University at Albany Office of Regulatory and Research Compliance
IRB Approval Date
2019-08-26
IRB Approval Number
IRB Sub. 5714
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
No
Is data collection complete?
Data Publication
Data Publication
Is public data available?
No
Program Files
Program Files
Reports and Papers
Preliminary Reports
Relevant Papers