Comment on Ameriks, Caplin, Leahy & Tyler (2007): Measuring Self-Control Problems

Abstract

Ameriks, Caplin, Leahy & Tyler (2007) study how lack of self-control may lead to overconsumption and low wealth accumulation. For their analysis, the authors calculate difference scores from their survey questions. We review their study and highlight potential issues in the use of difference scores such as lack of reliability, validity, spurious correlation and variance restriction. The concerns we raise put into question their findings and the conclusions they draw.