In this paper we investigate if there was a causal effect of changes in current and 'permanent' income on the health of East Germans in the years following reunification. Reunification was completely unanticipated and therefore can be seen as a providing some exogenous variation, which resulted...

Over recent years a number of papers have uses individual or household longitudinal survey data to investigate the rationality of income expectations. In this paper we provide a novel contribution to this literature by examining the ability of individuals to correctly predict their own future...