Working Paper
Household behaviour in times of political change: Evidence from Egypt
Yvonne Giesing, Almedina Music
ifo Institute, Munich, 2017
ifo Working Paper No. 237
ifo Institute, Munich, 2017
ifo Working Paper No. 237
Using representative household survey data, we study the short-term microeconomic effects of the Egyptian revolution on household behaviour in terms of education, health expenditure and savings. We construct a new measure of political instability by analysing the number of fatalities during political protests throughout the country. Difference-in-Differences estimations show that affected households increased spending on education, especially on their sons' higher education. This can be explained by a positive outlook towards the future, with better labour market prospects. At the same time, households decreased spending on health and increased savings, which can be interpreted as precautionary behaviour.
Schlagwörter: Egypt, education, health, household savings, political uncertainty
JEL Klassifikation: D140, D740, I100, I220