Do Financial Restrictions Deteriorate or Improve Self-Control?
Posted: 27 Jul 2017
Date Written: April 4, 2017
Do financial restrictions deteriorate or improve self-control? In a series of studies that include analyses of archival data from the Bank of Italy, three online studies, and one behavioral study, we show that the stage of the financial restrictions influences self-control. More specifically, we demonstrate that those who are in the initial stages of their financial restrictions (i.e., who have experienced restrictions for a short period) are worse at self-control than are those who are in the later stages of their financial restrictions (i.e., who experience restrictions for a long period). Moreover, we show that the mechanism of mindfulness explains the effect of stage of financial restriction on self-control in both related and unrelated domains. We discuss the theoretical contributions and managerial implications of our research.
Keywords: Financial Restrictions, Self-Regulation, Mindfulness
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