We develop a general equilibrium model with overlapping generations to show that Social Security may increase welfare in dynamically efficient economies where agents are affected by self-control problems a la Gul and Pesendorfer (2001, Econometrica 69, 1403). In calibrating the model to the US...

Motivated by experimental findings and the literature on modular brain functions, we simulate the intertemporal decisions of consumers affected by temptation. In this framework, the lack of self-control distorts agents choices and reduces their wellbeing. While their consumption behaviour is...

We study the relationship between saving choices and a key psychological characteristic such as locus of control using data from a longitudinal survey representative of the Dutch population. Locus of control measures the extent to which individuals perceive their life outcomes to be determined...