Replication data for: The Response of Household Saving to the Large Shock of German Reunification
- Fuchs-Schundeln, Nicola
AbstractGerman reunification was a large, unexpected shock for East Germans. Exploiting German reunification as a natural experiment, I analyze the validity of the life-cycle consumption model. I derive three stylized features concerning the saving behavior of East versus West Germans after reunification: (i) East Germans have higher saving rates than West Germans; (ii) this East-West gap is increasing in age at reunification; and (iii) for every cohort, this gap is declining over time. I show that a comprehensive life-cycle model can replicate these features. The precautionary saving motive is essential for the success of the model. (JEL D14, D91, E21)
Is supplement to
DOI: 10.1257/aer.98.5.1798 (Text)
Fuchs-Schündeln, Nicola. “The Response of Household Saving to the Large Shock of German Reunification.” American Economic Review 98, no. 5 (November 2008): 1798–1828. https://doi.org/10.1257/aer.98.5.1798.
- ID: 10.1257/aer.98.5.1798 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07