Understanding Society Scientific Conference 2019 - , University of Essex

The impact of Brexit on financial expectations and behaviours

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Day:Thu 4 Jul
  • Birgitta Rabe, University of Essex

We investigate the impact of the EU referendum outcome on individuals' expectations about the future and their savings behaviour. We treat the Brexit vote as an unexpected information shock and compare within a difference-in-difference setting individuals interviewed before and after the referendum date. The results show that the referendum outcome led to an adjustment of expectations about the future financial situation differently by Brexit support status. For leave supporters, the EU Referendum result had a positive impact on their personal future financial and employment expectations, while the opposite was true for remain supporters. Furthermore, we find tentative evidence that leavers increased their monthly saving amount by more than remainers.