Impulsivity and household indebtedness: Evidence from real life

Ottaviani, Cristina; Vandone, Daniela

doi:10.1016/j.joep.2011.05.002

Cited by 107 publications

(79 citation statements)

References 40 publications

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“…From the perspective of impulsivity, the BIS score was also found to be a statistically significant predictor as a standalone variable. This finding supports the view that level of impulsiveness plays a role in financial decision making (Ottaviani & Vandone, 2011). However self-control linked to both time orientation and impulsivity were not statistically significant predictors of preservation in the combined model.…”

supporting

confidence: 86%

Rational and behavioural predictors of pre-retirement cash-outs

Reyers

Schalkwyk

Gouws

2015

Journal of Economic Psychology

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Given the worldwide concern that individuals are not saving sufficiently for retirement, many governments are taking action to try and rectify this tendency. A key focus area is implementing policies to dissuade individuals from accessing accumulated retirement funds when changing jobs. While traditional economic theories assume that individuals act rationally and make optimal decisions without outside intervention, current policy interventions support behavioural theories of decision-making where sub-optimal choices occur due to limitations in human decision-making. Therefore, interventions are based on the assumption that individuals act irrationally. Despite these interventions, many individuals still

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supporting

confidence: 86%

Rational and behavioural predictors of pre-retirement cash-outs

Reyers

Schalkwyk

Gouws

2015

Journal of Economic Psychology

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“…Individuals high in impulsivity are likewise nonplanful, which makes them more likely to procrastinate (Youzhi & Jing, 2009), to incur high levels of unsecured (e.g., consumer) debt (Ottaviani & Vandone, 2011), and to have difficulties in school, work, health, and social adjustment (see Whiteside & Lynam, 2001). Their behavior and thought patterns also set them up for social and cognitive consequences.…”

mentioning

confidence: 99%

Toward a theory of distinct types of “impulsive” behaviors: A meta-analysis of self-report and behavioral measures.

Sharma¹,

Markon²,

Clark³

2014

Psychological Bulletin

545

653

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Impulsivity is considered a personality trait affecting behavior in many life domains, from recreational activities to important decision making. When extreme, it is associated with mental health problems, such as substance use disorders, as well as with interpersonal and social difficulties, including juvenile delinquency and criminality. Yet, trait impulsivity may not be a unitary construct. We review commonly used self-report measures of personality trait impulsivity and related constructs (e.g., sensation seeking), plus the opposite pole, control or constraint. A meta-analytic principal-components factor analysis demonstrated that these scales comprise 3 distinct factors, each of which aligns with a broad, higher order personality factor-Neuroticism/Negative Emotionality, Disinhibition versus Constraint/Conscientiousness, and Extraversion/Positive Emotionality/Sensation Seeking. Moreover, Disinhibition versus Constraint/Conscientiousness comprise 2 correlated but distinct subfactors: Disinhibition versus Constraint and Conscientiousness/Will versus Resourcelessness. We also review laboratory tasks that purport to measure a construct similar to trait impulsivity. A meta-analytic principal-components factor analysis demonstrated that these tasks constitute 4 factors (Inattention, Inhibition, Impulsive Decision-Making, and Shifting). Although relations between these 2 measurement models are consistently low to very low, relations between both trait scales and laboratory behavioral tasks and daily-life impulsive behaviors are moderate. That is, both independently predict problematic daily-life impulsive behaviors, such as substance use, gambling, and delinquency; their joint use has incremental predictive power over the use of either type of measure alone and furthers our understanding of these important, problematic behaviors. Future use of confirmatory methods should help to ascertain with greater precision the number of and relations between impulsivity-related components.

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“…Apart from the significance of Impulsive spending, in the same work it has been linked to Impulsive Personality that led to income shocks. In [17] Impulsivity was found a strong predictor of Unsecured Debt but not Secured Debt, like mortgages and car loans. The rationale behind this, stems from the fact that Secured Debt affects decisions that last for a long time and therefore is linked to Life-Cycle theory [20], according to which consumer enter into debt on rational grounds in order to maximise utility and thus is not associated with Impulsive behaviour which The problem of all this work summarised above is that it is characterised by a weak statistical modelling with the proportion of variance being explained in most of the models being around 10%.…”

Section: Related Workmentioning

confidence: 84%

“…In Economics, modelling Consumer Indebtedness traditionally adopted the "rational" behaviour of debtors [17], limiting the research on socio-economic variables. But recent interdisciplinary studies show that the behaviour of consumers deviates from the "rational" model [17] and that level of debt prediction is not a function of economic factors exclusively [20], [13], [19].…”

Section: Introductionmentioning

confidence: 99%

A Data Mining Framework to Model Consumer Indebtedness with Psychological Factors

Garibaldi

Ferguson

Aickelin

2014

2014 IEEE International Conference on Data Mining Workshop

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Modelling Consumer Indebtedness has proven to be a problem of complex nature. In this work we utilise Data Mining techniques and methods to explore the multifaceted aspect of Consumer Indebtedness by examining the contribution of Psychological Factors, like Impulsivity to the analysis of Consumer Debt. Our results confirm the beneficial impact of Psychological Factors in modelling Consumer Indebtedness and suggest a new approach in analysing Consumer Debt, that would take into consideration more Psychological characteristics of consumers and adopt techniques and practices from Data Mining.

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Impulsivity and household indebtedness: Evidence from real life

Cited by 107 publications

References 40 publications

Rational and behavioural predictors of pre-retirement cash-outs

Rational and behavioural predictors of pre-retirement cash-outs

Toward a theory of distinct types of “impulsive” behaviors: A meta-analysis of self-report and behavioral measures.

A Data Mining Framework to Model Consumer Indebtedness with Psychological Factors

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