Housing, Mortgages, and Self-control

Kathrin Schlafmann*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


Using a quantitative theoretical framework this paper analyzes how problems of self-control influence housing and mortgage decisions. The results show that people with stronger problems of self-control are less likely to become homeowners, even though houses serve as commitment for saving. The paper then investigates the welfare effects of regulating mortgage products if people differ in their degree of self-control. Holding house prices fixed, higher down payment requirements and restrictions on refinancing turn out to be beneficial to people with sufficiently strong problems of self-control, even though these policies restrict access to the commitment device.
Original languageEnglish
JournalReview of Financial Studies
Issue number5
Pages (from-to)2648-2687
Number of pages40
Publication statusPublished - May 2021

Bibliographical note

Published online: 16 September 2020


  • Self-control
  • Homeowners
  • Restrictions

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