Measuring Self-Control

Abstract

How significant are individual differences in self-control? Do these differences impact wealth accumulation? From where do they derive? Our survey-based measure of self-control provides insights into all three questions: 1.There are individual differences in self-control not only of a quantitative but also of a qualitative nature. In our sample, standard self-control problems of overconsumption are no more prevalent than are problems of under-consumption. 2.Standard selfcontrol problems do impede wealth accumulation, particularly in liquid form. Problems of underconsumption have the opposite effects. 3.Self-control is linked to "conscientiousness", a personality trait much studied by psychologists. There is a related link with financial planning.

Exotic Preferences for Macroeconomists

“…Amador, Werning, and Angeletos (2003) characterize optimal allocation rules when you put the two together. Ameriks, Caplin, Leahy, and Tyler (2004) quantify self-control with survey evidence and relate it to individual financial decisions. Benhabib and Bisin (2004) take a cognitive approach to a similar problem in which agents choose between automatic processes, which are subject to temptations, and control processes, which are not.…”

Pension contributions as a commitment device: Evidence of sophistication among time-inconsistent households

“…A motivation for the analysis in this paper is captured by Ameriks, Caplin, Leahy, and Tyler (2004) who suggest that ''the impact of self-control problems should vary according to the liquidity characteristics of the underlying assets. .…”

Stocks’ pricing dynamics and behavioral finance: A review

“…Individuals differ in self-control while they are more sensitive at under-consumption than over-consumption (Ameriks, et al 2007). Huffman & Bonn (2005) have shown that individuals tend to borrow rather than exhibit credit constraints.…”