Policy uncertainty and household savings

Using German microdata and a quasi-natural experiment, we provide evidence on how households respond to an increase in uncertainty. 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 als...

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Bibliographic Details
Main Authors: Giavazzi, F, McMahon, M
Format: Journal article
Published: Massachusetts Institute of Technology Press 2012