Media persuasion and consumption: Evidence from the Dave Ramsey Show

Authors Chopra
Year 2021
Type Working Paper
Abstract Can entertaining mass media programs influence individual consumption and savings decisions? I study this question by examining the impact of the Dave Ramsey Show, an iconic US radio talk show which encourages people to spend less and save more. To that end, I combine household-level expenditure records from a large scanner panel with fine-grained information about the geographic coverage of the radio show over time. Exploiting the quasi-natural experiment created by the staggered expansion of the radio show from 2004 to 2019, I find that exposure to the radio show decreases monthly household expenditures. This effect is driven by households with initially high expenditures relative to their income. In a mechanism experiment, I document that listening to the radio show has a persistent effect on people's attitudes towards consumption and debt. This suggests that attitudinal changes are a key mechanism driving behavioral change. My findings highlight the potential of entertaining mass media programs for interventions aimed at changing people's financial decisions.
Keywords Consumption, debt, entertainment, edutainment, household finance, mass media, persuasion, radio, savings
URL https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3992358
Tags Archival Empirical  |   Consumer Decisions  |   Experimental / Survey-Based Empirical  |   Financing- and Investment Decisions (Individual)