Prominent research argues that consumers often use personal budgets to manage self-control problems. This paper analyzes the link between budgeting and self-control problems in consumption-saving decisions. It shows that the use of good-specific budgets depends on the combination of a demand for...

How do future well-being and preferences affect the current well-being and preferences of forward-looking agents? Our theory explores this question, producing a new class of tractable models which capture and explain phenomena such as present bias, consumption interdependence, sign effects in...