Control Thyself: Self-Control Failure and Household Wealth
42 Pages Posted: 20 Oct 2013 Last revised: 1 Oct 2015
Date Written: July 29, 2015
We examine the relationship between self-control and household wealth. Building on literature in psychology, we take a more comprehensive approach to the concept of self-control and posit that it consists of three ingredients: planning, monitoring, and commitment to pre-set goals. We build a measure which combines those three components and can be computed using a standard representative survey. We find that self-control failure is strongly associated with different household net wealth measures and with self-assessed financial distress.
Keywords: Self-Control, Household Wealth, Household Finance
JEL Classification: D01, D12, D14
Suggested Citation: Suggested Citation