arbiter
JournalsAccount

Targeting, beliefs in own potential and subsequent investments: Theory and evidence from a framed field experiment

Elisa van Dongen et al.

Journal of Behavioral and Experimental Finance2026https://doi.org/10.1016/j.jbef.2026.101150article
AJG 1ABDC A
Weight
0.50

Abstract

While increased pressure on development finance budgets may require to reduce spending on anti-poverty transfers, new technical possibilities allow for more precise targeting. Yet, how targeting affects development outcomes remains an open question. We introduce a behavioral mechanism: if transfers are targeted to low-income individuals, recipients may interpret this as a signal of lacking earning potential, and consequently reduce investments. Using a framed field experiment in rural Uganda, we study how the targeting of anti-poverty transfers – compared to universal provision – affects subsequent investment behavior. Consistent with our hypotheses, we find that targeted recipients reduce their investments, which may reduce their earnings.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1016/j.jbef.2026.101150

Or copy a formatted citation

@article{elisa2026,
  title        = {{Targeting, beliefs in own potential and subsequent investments: Theory and evidence from a framed field experiment}},
  author       = {Elisa van Dongen et al.},
  journal      = {Journal of Behavioral and Experimental Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.jbef.2026.101150},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Targeting, beliefs in own potential and subsequent investments: Theory and evidence from a framed field experiment

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.