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Household behaviour in times of political change: Evidence from Egypt

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  • Yvonne Giesing
  • Almedina Music

Abstract

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.

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  • Yvonne Giesing & Almedina Music, 2017. "Household behaviour in times of political change: Evidence from Egypt," ifo Working Paper Series 237, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_237
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    Cited by:

    1. Bilal El Rafhi & Alexandre Volle, 2020. "The Effect of the Arab Spring on Preferences for Redistribution in Egypt," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(4), pages 875-903, December.
    2. Bargain, Olivier & Boutin, Delphine & Champeaux, Hugues, 2019. "Women's political participation and intrahousehold empowerment: Evidence from the Egyptian Arab Spring," Journal of Development Economics, Elsevier, vol. 141(C).
    3. Büttner, Nicolas & Grimm, Michael & Soubeiga, Sidiki, 2022. "Political instability and households’ investment behavior: Evidence from Burkina Faso," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 350-368.
    4. Liu, Jenny & Modrek, Sepideh & Sieverding, Maia, 2019. "The effects of political protests on youth human capital and well-being in Egypt," Social Science & Medicine, Elsevier, vol. 243(C).
    5. Yvonne Giesing & Reem Hassan, 2021. "Between Hope and Despair: Egypt's Revolution and Migration Intentions," CESifo Working Paper Series 9237, CESifo.
    6. Li, Logan, 2021. "Political violence and household savings: Evidence from the long-term effects of the Cultural Revolution," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    7. Gudrun Østby & Olga Shemyakina & Andreas Forø Tollefsen & Henrik Urdal & Marijke Verpoorten, 2021. "Public Health and Armed Conflict: Immunization in Times of Systemic Disruptions," Population and Development Review, The Population Council, Inc., vol. 47(4), pages 1143-1177, December.

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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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