Data for Policy uncertainty and household savings

We find that household saving increases significantly following the increase in political uncertainty observed in the run-up to the 1998 German general election. We also find evidence of a labor supply response by workers who can use the margin offered by part-time employment.

Our results are suggestive of the economic effects of “wars of attrition”: when political disagreement leads to delays in adopting a reform or the possibility that earlier reforms may be revoked, the increased uncertainty could slow the economy.<br><br>Data record consists of a zip archive containing the relevant data files, in .do and .dta format, and readme file. All analysis was completed using release GSOEP21 using Stata 10 run on a PC Toshiba laptop.