Does the source of a cash flow affect spending versus saving?

Authors

  • Valrie Chambers Stetson University
  • Eugene Bland Texas A&M University–Corpus Christi
  • Marilyn Spencer Texas A&M University–Corpus Christi

DOI:

https://doi.org/10.61190/fsr.v26i3.3324

Keywords:

Income, Income source, Decision making, Consumer behavior, Mental accounting

Abstract

This study examines whether people use different mental accounts for different types of hypothetical revenue windfalls rather than viewing them as fungible in their use consistent with neoclassical economics. This study finds that the income source sometimes influenced the amount spent/saved and a respondent’s general default as a spender or saver was highly significant in all regressions. This article adds to the literature by responding to Epley and Gneezy’s (2007) call for “a broader sample of participants, varying amounts of payment, and alternative frames” to identify moderators of windfall framing effects with implications for behavioral economic theory and financial planning.

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Published

2017-09-30

How to Cite

Chambers, V., Bland, E., & Spencer, M. (2017). Does the source of a cash flow affect spending versus saving?. Financial Services Review: The Journal of Individual Financial Management, 26(3), 291–313. https://doi.org/10.61190/fsr.v26i3.3324

Issue

Vol. 26 No. 3 (2017): Fall 2017

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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