The effect of self-control on household debt: The Spanish case

• Sara Fernández-López ^[1] ; Sandra Castro-González ^[1] ; David Rodeiro-Pazos ^[1] ; Lucía Rey-Ares ^[2]
  1. [1] Universidade de Santiago de Compostela

     Universidade de Santiago de Compostela

     Santiago de Compostela, España

     
  2. [2] Universidade da Couña
• Localización: XXX Jornadas Luso-Espanholas de Gestão Científica: cooperação transfronteiriça. Desenvolvimento e coesão territorial. Livro de resumos / Paula Fernandes (aut.), 2020, ISBN 978-972-745-273-6, pág. 209
• Idioma: inglés
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• Resumen

  • Household debt holding levels are increasing and it has outstanding importance for family finances and global economy. This paper analysed the effect of a behavioural trait, self-control, over the household indebtedness. Particularly, we examined how self-control, measure through a more compressive financial approach, influences on different types of household debts. To this end, we construct a self-control measure which combine three financial items and consider different types of household debts. The empirical analysis is based on data from the International Survey of Adult Financial Literacy and, the results, obtained through probit regression models, show that self-control negatively influences individuals’ decisions of holding debts. However, self-control differs across different types of debt and its effect depends on the supply side of credit.