Browsing by Author "Villatoro, Felix"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Personalized Information as a Tool to Improve Pension Savings: Results from a Randomized Control Trial in Chile
    (Univ. Chicago Press, 2024) Fuentes, Olga; Lafortune, Jeanne; Riutort, Julio; Tessada Pinto, José Antonio; Villatoro, Felix
    Forecasting of the outcome of saving for retirement is challenging, particularly for individuals who have limited financial literacy. We explore how reducing that barrier by offering personalized information affects long-term savings. To this end, we randomly offered personalized information or general information within the context of individual retirement accounts in Chile. Personalized information increased voluntary pension savings. Heterogeneity analysis suggests that the updating of priors by information recipients played an important role. However, despite the significant short-term response to the intervention, its temporary nature and limited magnitude are not enough to meaningfully alter the annuity payment that would be obtained from the savings stock.
  • Thumbnail Image
    Item
    The delegated portfolio management problem: Reputation and herding
    (ELSEVIER SCIENCE BV, 2009) Villatoro, Felix
    We study the relationship between financial intermediaries' reputation and herding in a delegated portfolio management problem context. We identify conditions under which equilibria exist such that intermediaries with good reputation invest in private information, whereas those with poor reputation herd. The model's empirical predictions are discussed and found to be consistent with previous evidence. From a normative stand, our work points out the possible existence of a policy trade-off between protecting investors by demanding more transparency from intermediaries and encouraging herding by free-riders for whom imitating portfolio decisions would be easier under tighter regulation, such as more frequent portfolio disclosure. (C) 2009 Elsevier B.V. All rights reserved.