# Data Appendix for Currency Politics: The Political Economy of Exchange Rate Policy (Princeton University Press, 2015) **Data Appendix for Currency Politics: The Political Economy of Exchange Rate Policy (Princeton University Press, 2015)** **Table of Contents** - [1. US 1800s](#us1800s) - 1.1. Download - 1.2. Online Documentation - 2. Latin America - 2.1. Download - 2.2. Online Documentation - 3. EU - 3.1. Download - 3.2. Online documentation ## **1 US 1800s** **1.1 Download** - [US 1800s - All datasets and documentation (ZIP, 3.5M)](/files/jfrieden/files/us_files_0.zip) ## **1.2 Online Documentation** **1.2.1 Overview** The final datasets are generated into data.files.YYYYMMDD in the root directory. If not using the shell scripts, then the \*.dta files will be found in data/dataFiles/processed/for\_analysis, and the user scripts \*.do can be copied over manually from the otherscripts directory (note that they must be in the same directory as the datasets to work). The current naming convention for the House of Representatives data is: h##.\[description of topic issue\].\[pooled|wide\].\[scd|sl\].dta The fields are: **h##** gives the Congress number; if there are two, then they are both listed at the beginning of the filname. **\[description of topic issue\]** This is a textual description of the topic issue that is included in the dataset. Rather than analyzing *all* votes at a go, it makes more sense to group them by votes that are related to particular topic issues, or large acts, in order to provide consistency in what a "hard money" vote means. More info on the topic issues is give below. **pooled|wide** indicates the shape of the datafile. Wide datasets give *one observation per Congressional district*. Votes for separate motions appear as different columns, which are named v##c, where ## gives the **vote number**, which is unique to each Congress. Pooled datasets have *one observation per vote*, i.e., each Congressional district appears as many times as there are votes included in the issue topic. This is potentially better for providing an overall picture, but standard errors will need to be corrected for correlations between observations. The most standard way to do this is to cluster by Congressional district. **scd|sl** Indicates the level of the economic data of the dataset. sl indicates *state-level* data, so all Congressional districts in the same state will share the same economic data. scd indicates Congressional district level data. For the Senate, a dataset has been generated to include the four votes analyzed in the original JEH paper. The naming convention is analogous, except that intial portion is s## to indicate Senate votes, and all the data is state level, so is indicated by s. **1.2.2 Topic issues** Votes are grouped according to topic issues. Since most votes cannot be completely described by the hard/soft vote dichotomy, pooling over all the votes means pooling values of the vote variable that might not be entirely consistent with each other. To help mitigate potential problems associated with this, we analyze groups of votes together; for instance inflation.bill datasets contain only the votes related to the Inflation Bill, and the vote variable will tell whether a Congressional district's representative votes for or against the Inflation Bill. The file vote\_codings.txt is dynamically generated from the comments of the associated R script, poolvotes.R, and will contain more up to date descriptions of the particular groupings, votes, and codings in the generated datasets. The most recent groups are described in the following section. **1.2.2.1 Topic definitions** This section describes the topics currently defined, and the direction that each vote is coded within each topic. Topic descriptions come from Jasmina Beganovic's notes on the secondary literature (see Additional Documentation). **Contraction Act** New Treasury Secretary High McCulloh asks Congress for authority to retire greenbacks as a first step toward resumption in December, 1856 and Congress approves by a vote of 144 to 6 pledging cooperative action in a contraction of the currency with a view to a return to specie (Unger, p.41). The original bill (Feb. 21, 1866) gives the Secretary a completely free hand in withdrawing greenbacks (V128). However, this bill is voted down and a more moderate bill is passed (V139) which allows the Treasury to retire from circulation up to $10 million of notes in the first 6 moths and no more than $4 million per month thereafter. Table 1: Contraction Act Sort**Congress** **Vote** **H/S** 39 125 soft 39 126 soft 39 128 hard 39 130 soft 39 131 hard 39 139 hard **Suspension of the Contraction Act** However, during 1866-1867, McCulloh’s tight money supply policy was becoming increasingly unpopular among a heterogeneous group of businessmen, agrarians, and political opponents in part due to a business recession. Resistance culminated with a repeal of the 1866 Act passed by the House in December 1867. Senate attempted unsuccessfully to moderate the bill via amendments but passed it in February 1868(Unger, p.43). Table 2: Suspension of Contraction Act Sort**Congress** **Vote** **H/S** 39 363 soft 39 429 soft 40 100 hard 40 120 soft **Bond repayment and Public Credit Act** The victory of the soft money forces on the question of money supply/contraction was followed by their defeat on the related issue of bond repayment (Unger, p.43). Western Democrats wanted the 5-20 bonds to be redeemed in greenbacks. Sherman, the Chairman of the Finance Committee came up with a funding bill in 1886 which allowed conversion of federal bonds into greenbacks in order to satisfy some pro-greenback constituents in his home state Ohio (Unger, p.88). Conservative Republicans took offense and stripped the bill of the offending features via amendments and passed it as a simple refunding measure (which did not become law due to President Johnson’s pocket veto). In the lead-up to the 1868 elections, Republicans took a strong stand against all forms of repudiation of the debt. The Republican victory in the 1868 Presidential elections gave the hard money camp strength and in March 1869 Congress passed the Pubic Credit Act, which calls for redemption of the 5-20s in gold. Table 3: Bond repayment and Public Credit Sort**Congress** **Vote** **H/S** 40 134 hard 40 266 hard 40 476 hard 40 491 soft 40 492 hard 40 494 soft 40 495 hard 40 496 hard 40 531 hard 40 658 soft 40 660 soft 40 661 soft 40 662 hard 40 700 hard **Inflation Bill** In the fall of 1973 the country saw the end of the railroad boom and a panic which started a six year long economic recession. In late 1873, committees in both the House and Senate were working on bills to address the economic problems and respond to the expansionist pressures that had revived since the panic (Unger, p. 215). The bill introduced by the House (HR1572) authorized a modest expansion, a fund for currency elasticity, specie payments, and free banking. The Senate bill (S617) was a “…hodgepodge of expansionist, resumptionist and free banking elements that pleased no one entirely” (Unger, p. 217). Both bills were compromises, “designed to be all things to all men … with a jumble of elements pointing simultaneously in different directions” (Unger, p. 219). However, due to the general economic hardship, inflationist elements prevailed and both bills passed with amendments to make them more expansionary. In the Senate, S617 (which later became known as the Inflation Bill) was quickly amended into an inflationary measure (see V87, V88). Over time, the entire bill vas substituted and passed in its revised form. The House passed its own free banking bill and also approved the Senate measure by a decisive majority of 140 to 102 (Unger, p. 234). The passing of the Inflation Bill was a product of a coalition of western and Pennsylvania Republicans. It was strongly opposed by conservative North-easterners from both parties with the support of merchants, bankers and reformers. Although it was generally believed the Pres. Grant favored the bill, he vetoed it in an unexpected move on April 22 (Unger, p.244). Senate voted on a motion to override the veto but fell short of the required two-thirds. Table 4: Inflation Bill Sort**Congress** **Vote** **H/S** 43 122 hard 43 124 soft 43 125 hard 43 126 soft **Repeal of the Resumption Act** A compromise bill drafted by Senate Republicans that satisfied various Republican constituents by providing for free banking with a reduction of greenbacks and resumption by accumulation of a gold reserve, and resumption to gold at a certain date four years later (January 1, 1879). The bill was thought to be a showing of unity by Republican senators in an election year. It was passed in the Senate strictly along party lines and then in the House by a lame duck Congress with by moderate Republicans with the Democrats and Republican extremists opposed (Unger, p.259). It brought the country eventually to the gold standard but at the time of passing it was not taken very seriously due to its vagueness and lack of operative features. Following the Resumption Act, several attempts were made in the House to repeal the unpopular measure, mainly led by liberal democrats. However, they encountered resistance from most Republicans and a group of North-eastern and Western Democrats. This split in the party proved challenging for the Democrats. Moreover, House rules on voting outside the regular committee time (2/3 majority required for victory) made the repeal more difficult. Table 5: Repeal of the Resumption Act Sort**Congress** **Vote** **H/S** 44 28 hard 44 44 soft 44 52 soft 44 57 soft 44 58 soft 44 59 soft 44 124 hard 44 125 soft 44 126 soft 44 154 soft 44 176 hard 44 177 soft 44 216 soft 45 6 hard 45 30 soft **Bland-Allison Act** Bland introduced the silverite bill in the House in November 1878. Senate moderates (including Alison) were able to soften the bill by removing the free coinage provision (Unger, p.362). The bill once more created a silver dollar, albeit at a limited coinage. It required the Treasury to buy between $2 and $4 million of silver per month at the fixed price of $1.29 per ounce to be coined into standard silver dollars1 (Timberlake, p.28). The bill was pro silver but a weak compromise. It was supported by the Greenbackers (Hicks, p.305), by most leading members of the Democratic party, and a significant number of Republicans from western silver-producing states. The executive branch was generally anti-silver in this period and when the bill came to President Hayes, he vetoed it. (Timberlake, p.28) Both the Senate and the House re-passed the bill with the required 2/3 majority. Table 6: Bland-Allison Act Sort**Congress** **Vote** **H/S** 45 12 soft 45 86 hard 45 87 soft 45 93 soft **Sherman Act** Continued the principle of the Bland-Allison Act, but increased the government’s required purchase amount to 54 million ounces / year, which was roughly equal to the silver output of the U.S. Nevertheless, the price of silver continued to fall. The motivation for passing a pro-silver compromise on the Republican side stemmed from a promise they had made to certain constituents during the 1888 campaign in which Benjamin Harrison defeated Grover Cleveland in a close election. (Hicks, p.306) Table 7: Sherman Act Sort**Congress** **Vote** **H/S** 51 194 hard 51 195 hard 51 196 soft 51 197 hard 51 220 soft **1.2.3 Variable descriptions** **1.2.3.1 Vote variables** Sort**Variable name** **Description** vote 1=vote for hard money, 0=vote for soft money **\[POOLED\]** vhardprop **Proportion** of hard votes **\[WIDE\]** vstable Stable vote; 1=hard, 0=soft **\[WIDE\]** vXXc Single vote; 1=hard, 0=soft; **\[WIDE\]** **1.2.3.2 Congressional district and state variables** **All years** The following variables are found in both the 1870 and 1890 censuses, and so they appear in all datasets. Table 8: Congressional district level variables available in all years Sort**Variable name** **Description** totpop Total population urb25 Population in cities with > 25k inhabitants acimp Acres improved farmland equipval **Value** of farm implements and machinery farmout Total **value** of all farm output farms Total **number** of farms farm100 **Number** of farms 100-499 acres farm500 **Number** of farms 500-999 acres farm1000 **Number** of farms > 1000 acres mfgestab **Number** of manufacturing establishments totout Total **value** of all output (farm + mfg) farmprop Farm **proportion** of total output (by value) mfgprop Mfg **proportion** of total output (by value) tradedpc **value** of tradeable agrictultural output *per capita* ntradedpc **value** of non-tradeable agricultural output *per capita* farmpc **value** of agricultural output *per capita* mfgpc **value** of manufacturing output *per capita* party Party code (100=Dem, 200=Repub; potential probs w/ 3rd parties) partyR Indicator for Republican representative partyD Indicator for Demacratic representative id Congressman ID cD Congressional District Number (unique within state) state State ICPSR Code stateName2 State Name name Congressman name **1890s** The following variables appear only in the 1890 census, and hence they are found only in datasets generated with votes for the later Congresses. Table 9: Congressional district level variables available for 1890 only Sort**Variable name** **Description** urb890 Urban population 1890 acunimp number unimproved **acres** in farms acunimp number unimproved **acres** in farms barley number **bushels** barley barley number **bushels** barley barleyac number **acres** planted in barley barleyac number **acres** planted in barley buckwhea number **bushels** buckwheat buckwhea number **bushels** buckwheat buckwhac number **acres** planted in buckwheat buckwhac number **acres** planted in buckwheat corn number **bushels** indian corn corn number **bushels** indian corn cornac number **acres** planted in indian corn cornac number **acres** planted in indian corn oats number **bushels** oats oats number **bushels** oats oatsac number **acres** planted in oats oatsac number **acres** planted in oats rye number **bushels** rye rye number **bushels** rye ryeac number **acres** planted in rye ryeac number **acres** planted in rye wheat number **bushels** wheat wheat number **bushels** wheat wheatac number **acres** planted in wheat wheatac number **acres** planted in wheat mfgcapla **value** mfg capital in land mfgcapbu **value** mfg capital in buildings mfgcapeq **value** mfg capital in equipment mfgcapca **value** mfg capital in live assets/cash mfgmisco total misc expenses mfg (**value**) mfgavemp Average **number employees** of all classes in mfg estabs mfgavemp Average **number employees** of all classes in mfg estabs valfaenc Total **value** of encumbered farms valfamtg Total **value** of mortgages on enc farms valhoenc Total **value** of encumbered homes valhomtg Total **value** of mortgages on enc homes inttot Total interest paid on mortgages on homes/farms inthome Interest paid on mortgages on homes intfarm Interest paid on mortgages on farms debt **Value** of real estate (farm and house) mortgages as a proportion of total real estate value debtpc Real estate mortgage **value** per capita encfarms **Value** of encumbered farms as fraction of total farm value valmtg Total **value** of real estate mortgages valtot Total **value** of farms and houses **1870s** The following variables are available in 1870s data only, at both the state and Congressional district level. Table 10: Congressional district level variables available for 1870s only Sort**Variable name** **Description** urb870 Urban population 1870 >2500 farmlab Annual agricultural **wages** paid including board mfglabor **number** hands employed mfg mfglabor **number** hands employed mfg homemfg **Value** home manufactures orchard **Value** of orchard products garden **Value** of garden products forest **Value** of forest products homemfg **Value** of home manufactures acwoods number unimproved **acres** woods/forests acwoods number unimproved **acres** woods/forests acunioth number other unimproved **acres** farms acunioth number other unimproved **acres** farms wealth **True value** real and personal estate wealthas **Assessed \*value** real and personal estate The following variables are available only at the state level. Table 11: State level variables available for 1870s only Sort**Variable name** **Description** occtot Total number employed in all occupations occtot Total number employed in all occupations agemp Total number employed in agriculture agemp Total number employed in agriculture ppsemp Total number employed in prof services ppsemp Total number employed in prof services ttremp Total number employed in trade/transport ttremp Total number employed in trade/transport mfgemp Total number employed in manufacturing mfgemp Total number employed in manufacturing stdebt Total state indebtedness newspaps Total newspapers newscops Total newspaper copies newscirc Total newspaper circulation newsad number advertising publications newsad number advertising publications newsadco advertising publications copies newsadci advertising publications circulation newsagri number agricultural newspapers & periodicals newsagri number agricultural newspapers & periodicals newsagco agricultural publication copies newsagci Agricultural publications circulation newscf number commerce/finance publications newscf number commerce/finance publications newscfco commerce/finance publications copies newscfci commerce/finance publications circulation newspo number political publications newspo number political publications newspoco political publications copies newspoci political publications circulation ## **2 Latin America** **2.1 Download** - [Latin America - Datasets (Annual and Monthly series) and documentation (ZIP, 3.7M)](/files/jfrieden/files/la_files_0.zip) **2.2 Online Documentation** **2.2.1 Annual** Sort**Variable** **Description** country ifs IFS code year Year imf_areaer IMF classification (fine) imf_coarse IMF classification (coarse) df_er_alt2 De facto ER regime annual_fine annual_coarse dj De jure classification, 3 point scale. 3=pegged, 2=intermediate, 1=floating. djbinary De jure classification, 2 point scale. 1=fixed, 0 = intermediate/fixed dflys De facto classification from LY&S, 3 point scale. 3=pegged, 2=intermediate, 1=f dflysbinary De facto classification from LY&S, 2 point scale. 1=fixed, 0=intermediate/float dfrrbinary De facto classification from Reinhart and Rogoff. 2 point scale. 1=fixed, 0=fl jspeg binary coding of peg = 1 and nonpeg = 0 jspegtype WHY obs is labeled peg. 1 = 0 change, 2 = 1% bands, 3 = 2% bands, 4 = 1 devalua kspeg peg definition: jspeg minus devals plus syp that are not devals kscu currency union (primarily Rose definition) ksbase base country ifscode importsplusexportsofgdp Imports plus exports (% of GDP) cabalance_gdp Current account balance (% of GDP) tradebalance_gdp Trade balance/ GDP tot_index Net barter terms of trade index (2000 = 100) gdpcurrentusd GDP (current US$) exportsusd Exports of goods and services (current US$) exportsofgoodsmillionusd Total exports (US$ m) importsusd Imports of goods and services (current US$) population Population (m) domesticcredittops_gdp Domestic credit to private sector (% of GDP) domesticbankcredit_gdp Domestic credit provided by banking sector (% of GDP) kaopen Chinn-Ito index of capital account openness externaldebtgdpinpercent External debt stocks, total (DOD, % of GDP) inflation Inflation, consumer prices (annual %) loginfl Log of inflation + 1 (linear transform) high High inflation, dummy for when inflation > 50 % hyper Hyperinflation, dummy for when inflation > 200 % ag_empl Employment in agriculture (% of total employment) agri_pc_gdp Agriculture, value added (% of GDP) manuf_empl Employment in manufacturing (% of total employment) manuf_pc_gdp Manufacturing, value added (% of GDP) ind_empl Employment in industry (% of total employment) polity2 Democracy (Polity II) polariz Polarization Index frac Fractionalization Index yrsoffc Chief Executive Years in Office yrcurnt Years Left in Current Term externalbalance_gdp External balance on goods and services (% of GDP) avgtar Average applied tariffs. sw Trade openness binary variable finopen Chinn-Ito index of financial openness sdtot Standard deviation of terms of trade for particular country over whole period. fdinetinflow FDI, net inflows, % of GDP. extdebt External debt, % GDP. portasset Portfolio equity assets, % GDP. portliab Portfolio equity liabilities, % GDP. fdiasset FDI assets, % GDP fdiliab FDI liabilities, % GDP. debtasset Debt assets (portfolio debt + other investment), % GDP. debtliab Debt liabilities (portfolio debt + other investment), % GDP. fdasset Financial derivatives (assets), % GDP fdliab Financial derivatives (liabilities), % GDP. totalasset Total assets, % GDP. totalliab Total liabilities, % GDP. netexpos Net external position, % GDP govstrength govfrac Probability that two deputies picked at random from among the government parties leftexec Dummy for left party executive. 1=Left, 0= R, C, not applicable rightexec Dummy for right party executive. 1=Right, 0=L, C, not applicable. cbi Central bank governor turnover rate (per 5 years) system Categorical variable. Presidential = 0, Assembly-elected President=1, Parliamen checks number of veto players legelec Legislative election dummy exelec Executive election dummy election Either legislative or executive, dummy viewdj Percent of countries in world with a fixed exchange rate in a given year. viewlys % of countries in world with a fixed exchange rate in a given year. viewrr % of countries in world with a fixed exchange rate in a given year. year_cat Years gdp_pc_usd GDP per capita (current US$) gdp_pc_ppp GDP per capita, PPP (constant 2005 int'l $, thousands) resm2 Money and quasi money (M2) to total reserves ratio resimp Total reserves in months of imports fdiliabilities FDI stock (current US$ m) (Lane and Milesi-Ferretti, 2007) dt_cur_dmak Currency composition of PPG debt, Deutsche mark (%) dt_cur_euro Currency composition of PPG debt, Euro (%) dt_cur_ffrc Currency composition of PPG debt, French franc (%) dt_cur_jyen Currency composition of PPG debt, Japanese yen (%) dt_cur_mulc Currency composition of PPG debt, Multiple currencies (%) dt_cur_othc Currency composition of PPG debt, all other currencies (%) dt_cur_sdrw Currency composition of PPG debt, SDR (%) dt_cur_swfr Currency composition of PPG debt, Swiss franc (%) dt_cur_ukps Currency composition of PPG debt, Pound sterling (%) dt_cur_usdl Currency composition of PPG debt, U.S. dollars (%) exportstoUS_comtrade Exports to US (Comtrade) exportstotal_comtrade Exports to World (Comtrade) expperUSA Exports to US (% of total) foreignassets_pc_gdp Total assets in foreign currency as a % of GDP (Lane-Shambaugh) foreignliabilities_pc_gdp Total liabilities in foreign currency as a % of GDP (Lane-Shambaugh) foreigndebtassets_pc_gdp Foreign debt assets in foreign currency as a % of GDP (Lane-Shambaugh) foreigndebtliabilities_pc_gdp Foreign debt liabilities in foreign currency as a % of GDP (Lane-Shambaugh) gov1vote Vote Share of Largest Government Party ulvote Vote Share of Non-Aligned Parties numvote Vote Share of Government Parties oppvote Vote Share of Opposition Parties oppfrac Opposition Fractionalization Index resm2_inv Reserves to broad money (M2) fdiliabilities_pc_gdp FDI stock (% of GDP) expUSA Exports to US / GDP peg_new binary peg variable from df_er_alt2; 0=float, 1=peg ereer Effective real exchange rate (CPI 2005=100); source: IFS carib Dummy variable for Caribbean economy latam Dummy variable for Latin American economy reer reer _merge mfgopen agopen L_importsplusexportsofgdp L_inflation L_ag_empl L_manuf_empl L_mfgopen L_agopen L_finopen L_extdebt **2.2.2 Monthly series** Sort**Variable** **Description** country Country date Date exfixed Fixed exchange rate, coarse classifications 1-2 being fixed enter_peg ==1 if country enters a peg this year exit_peg ==1 if country exits a peg the following year time0 time1 _merge _st _d _origin _t _t0 ifs IFS code from IMF year Year month Month exfine Fine classification from Ilzetzki, Reinhart and Rogoff (2008) imf_areaer_a Fine classifications from IMF, but annual values only excoarse Coarse classification from Ilzetzki, Reinhart and Rogoff (2008) imf_coarse_a Coarse classifications from IMF, but annual values only era ER classification (1, 2, 9 or 10) arr ER classification (1-9) exrate Another exchange rate classification? dualmult ER dummy (1: dual/multiple regimes) devaluation ER dummy (1: devaluation) foat ER dummy (1: ??) exratencunitsperus Ex Rate (n.c. units per US$) exratechange Change in exchange rate (1970-2004 data, with exratedepapp appended for 1960-197 exratedepapp Index of changes in exchange rate (1960-1994 data) rer Real exchange rate (1960-1994) rer2 Real exchange rate, alternate measure (1960-1994) stdevrer2 Standard deviation of real exchange rate (1960-1994) xr_at xr_af2 prices Index of price level: 2000 = 100 (1970-2004) inflation Inflation (1970-2004) inflation2 Inflation (1960-1994) - measured differently (TBD) money Money quasimoney Quasi Money reserves Reserves (1960-2004) resimp Reserves to imports (1970-2004) m2reserves M2 to reserves ratio (%) (1960-1994) - maybe inverted gdp GDP annual, in current US$ m (1970-2004) lngdp_a log(GDP). gdpmlocc GDPM LOC(C) gdpmlock GDPM LOC (K) gdpmlock90 GDPM LOC(K90) gdp_old GDP semi-annual, in constant LCU (1960-1994) gni_old GNI (current US$) exports exportsusdc Exports (USD C) exports_old Exports of goods and services (constant LCU) exportslocc EXPORTS LOC(C) exportslock EXPORTS LOC (K) exportslock90 EXPORTS LOC(K90) imports importsusdc Imports (USD C) imports_old Imports of goods and services (constant LCU) importslocc IMPORTS LOC(C) importslock IMPORTS LOC (K) importslock90 IMPORTS LOC(K90) tradegdp Trade as a percent of GDP (annual values, 1970-2004) tradebalanceusdc Trade balance in current US$, 1960-1994 currentaccountusdc Current account balance in current US$, 1960-1994 avgtar Average applied tariffs, (1981-2003, World Bank) sw Trade openness binary variable, (1970-2004, Welch and Wacziarg) finopen Chinn-Ito index of financial openness, (1970-2004) extdebt External debt, % GDP, (1970-2004, WDI) portasset Portfolio equity assets, % GDP, (1970-2004, Lane and Milesi-Ferretti) portliab Portfolio equity liabilities, % GDP, (1970-2004, Lane and Milesi-Ferretti) fdiasset FDI assets, % GDP (1970-2004, Lane and Milesi-Ferretti) fdiliab FDI liabilities, % GDP (1970-2004, Lane and Milesi-Ferretti) debtasset Debt assets (portfolio debt + other investment), % GDP (1970-2004, Lane and Mile debtliab Debt liabilities (portfolio debt + other investment), % GDP (1970-2004, Lane and fdasset Financial derivatives (assets), % GDP (1970-2004, Lane and Milesi-Ferretti) fdliab Financial derivatives (liabilities), % GDP (1970-2004, Lane and Milesi-Ferretti) fdinetinflow Net FDI inflows, % GDP (1970-2004, Lane and Milesi-Ferretti) fdiinflows_old Foreign direct investment, net inflows (BoP, current US$) fdinet_old Foreign direct investment, net (BoP, current US$) netltcapitalflow_old Net Long Term Capital Flow othercapitalflows_old Capital flows not elsewhere included (BoP, current US$) totalasset Total assets, % GDP (1970-2004, Lane and Milesi-Ferretti) totalliab Total liabilities, % GDP (1970-2004, Lane and Milesi-Ferretti) netexpos Net external position, % GDP (1970-2004, Lane and Milesi-Ferretti) sdtot Standard deviation of terms of trade over whole period, (1970-2004, Ghosh, Gulde tot_old Net barter terms of trade index reservesassets Reserves/Assets publenassets PubLen/Assets cons_old General government final consumption expenditure (constant LCU) gdfi_old GDFI - public sector (constant LCU) manu Manufacturing, value added, % of GDP (1970-2004, WDI) agri Agriculture, value added, % of GDP (1970-2004, WDI) vagdp Value added GDP (LC constant, 1960-1994) vamanufacturinglcconstant Value added manufacturing (LC constant, 1960-1994) vaagriculturelcconstant Value added agriculture (LC constant, 1960-1994) vamininglcconstant Value added mining (LC constant, 1960-1994) vaelectricitygaswaterlcconstant Value added electricity, gas and water (LC constant, 1960-1994) vaconstructionlcconstant Value added construction (LC constant, 1960-1994) vatouristlcconstant Value added tourism (LC constant, 1960-1994) vaserviceslcconstant Value added services (LC constant, 1960-1994) legelec Legislative election dummy (1960-2004, DPI) exelec Executive election dummy (1960-2004, DPI) coups Coups (1960-1994) cumulativeelections Cumulative elections (1960-1994) governmentalchange Governmental change (1960-1994) nonconstitutionalchanges Non constitutional changes (1960-1994) polity Polity 2 score (1970-2004, Polity IV) democ Democracy dummy, for polity scores of 7 or greater (1970-2004, Polity IV) autoc Autocracy dummy, for polity scores of -6 or less (1970-2004, Polity IV) govstrength Percentage of seats held by the government in the first chamber (1975-2004, DPI) govfrac Government fractionalization (1975-2004, DPI) leftexec Dummy for left executive, 1=Left, 0= R, C, N/A (1975-2004, DPI) rightexec Dummy for right executive, 1=Right, 0=L, C, N/A (1975-2004, DPI) checks Number of veto players (1975-2004, DPI) cbi Central bank governor turnover rate (per 5 years) (1970-1999, Ghosh, Gulde, and system Presidential = 0, Assembly-elected President=1, Parliamentary = 2 (1975-2004, DP view6 View 6 view8 View 8 view6w View 6 W view8w View 8 W df_er_alt2_a De facto ER regime df_peg1_a De facto ER regime (1: fixed, 0: floating) annual_fine_a annual_coarse_a dj_a De jure classification, 3 point scale. 3=pegged, 2=intermediate, 1=floating. djbinary_a De jure classification, 2 point scale. 1=fixed, 0 = intermediate/fixed dflys_a De facto classification from LY&S, 3 point scale. 3=pegged, 2=intermediate, 1=f dflysbinary_a De facto classification from LY&S, 2 point scale. 1=fixed, 0=intermediate/float dfrrbinary_a De facto classification from Reinhart and Rogoff. 2 point scale. 1=fixed, 0=fl arrangem_old_a regime_old_a REGIME regime1_old_a importsplusexportsofgdp_a Imports plus exports (% of GDP) cabalance_gdp_a Current account balance (% of GDP) tradebalance_gdp_a Trade balance/ GDP open_old_a Open tot_index_a Net barter terms of trade index (2000 = 100) gdpcurrentusd_a GDP (current US$) exportsusd_a Exports of goods and services (current US$) exportsofgoodsmillionusd_a Total exports (US$ m) importsusd_a Imports of goods and services (current US$) population_a Population (m) domesticcredittops_gdp_a Domestic credit to private sector (% of GDP) domesticbankcredit_gdp_a Domestic credit provided by banking sector (% of GDP) kaopen_a Chinn-Ito index of capital account openness externaldebtgdpinpercent_a External debt stocks, total (DOD, % of GDP) inflation_a Inflation, consumer prices (annual %) loginfl_a Log of inflation + 1 (linear transform) loginfl_old_a Log of inflation + 1 (linear transform), lagged one year high_a High inflation, dummy for when inflation > 50 % hyper_a Hyperinflation, dummy for when inflation > 200 % hyper_old_a Hyperinflation, dummy for when inflation > 1000 % (old) ag_empl_a Employment in agriculture (% of total employment) ag_empl_bk_a Employment in agriculture (% of total employment) agri_pc_gdp_a Agriculture, value added (% of GDP) agrl_old_a Agrl manuf_empl_a Employment in manufacturing (% of total employment) manuf_pc_gdp_a Manufacturing, value added (% of GDP) manugdpl_old_a Manufl ind_empl_a Employment in industry (% of total employment) minl_old_a Minl polity2_a Democracy (Polity II) polariz_a Polarization Index frac_a Fractionalization Index yrsoffc_a Chief Executive Years in Office yrcurnt_a Years Left in Current Term externalbalance_gdp_a External balance on goods and services (% of GDP) resimp_old_a Reserves (including gold) / Imports (goods and services) tradegdp_a Trade (exports + imports) / GDP avgtar_a Average applied tariffs. sw_a Trade openness binary variable finopen_a Chinn-Ito index of financial openness sdtot_a Standard deviation of terms of trade for particular country over whole period. gdp_a GDP, current million USD. fdinetinflow_a FDI, net inflows, % of GDP. extdebt_a External debt, % GDP. portasset_a Portfolio equity assets, % GDP. portliab_a Portfolio equity liabilities, % GDP. fdiasset_a FDI assets, % GDP fdiliab_a FDI liabilities, % GDP. debtasset_a Debt assets (portfolio debt + other investment), % GDP. debtliab_a Debt liabilities (portfolio debt + other investment), % GDP. fdasset_a Financial derivatives (assets), % GDP fdliab_a Financial derivatives (liabilities), % GDP. totalasset_a Total assets, % GDP. totalliab_a Total liabilities, % GDP. netexpos_a Net external position, % GDP democ_a Democracy dummy, for polity2 scores of 6 or greater autoc_a Autocracy dummy, for polity2 scores of -6 or less govstrength_a govfrac_a Probability that two deputies picked at random from among the government parties leftexec_a Dummy for left party executive. 1=Left, 0= R, C, not applicable rightexec_a Dummy for right party executive. 1=Right, 0=L, C, not applicable. cbi_a Central bank governor turnover rate (per 5 years) system_a Categorical variable. Presidential = 0, Assembly-elected President=1, Parliamen checks_a number of veto players legelec_a Legislative election dummy exelec_a Executive election dummy election_a Either legislative or executive, dummy viewdj_a Percent of countries in world with a fixed exchange rate in a given year. viewlys_a % of countries in world with a fixed exchange rate in a given year. viewrr_a % of countries in world with a fixed exchange rate in a given year. inf10m_old_a inf50p_old_a covatot_old_a TOT volatility volat_old_a coef of var tot * openness resKA_old_a Capital controls1 capcon_old_a capital controls summary variab view6_old_a resm2_old_a Reserves/m2 polinst_old_a govseats_old_a Govseats efpart_old_a Efpart dict_old_a dict2_old_a autocrac>=7 tardum_old_a Low tariff resdum_old_a gdp_pc_usd_a GDP per capita (current US$) gdp_pc_ppp_a GDP per capita, PPP (constant 2005 int'l $, thousands) resm2_a Money and quasi money (M2) to total reserves ratio resimp_a Total reserves in months of imports fdiliabilities_a FDI stock (current US$ m) (Lane and Milesi-Ferretti, 2007) exportstoUS_comtrade_a Exports to US (Comtrade) exportstotal_comtrade_a Exports to World (Comtrade) expperUSA_a Exports to US (% of total) foreignassets_pc_gdp_a Total assets in foreign currency as a % of GDP (Lane-Shambaugh) foreignliabilities_pc_gdp_a Total liabilities in foreign currency as a % of GDP (Lane-Shambaugh) foreigndebtassets_pc_gdp_a Foreign debt assets in foreign currency as a % of GDP (Lane-Shambaugh) foreigndebtliabilities_pc_gdp_a Foreign debt liabilities in foreign currency as a % of GDP (Lane-Shambaugh) gov1vote_a Vote Share of Largest Government Party ulvote_a Vote Share of Non-Aligned Parties numvote_a Vote Share of Government Parties oppvote_a Vote Share of Opposition Parties oppfrac_a Opposition Fractionalization Index latam_a Dummy for major Latin American economies centr_a Dummy for smaller Central American and Caribbean economies resm2_inv_a Reserves to broad money (M2) fdiliabilities_pc_gdp_a FDI stock (% of GDP) expUSA_a Exports to US / GDP liberaliz_dummy_a Dummy for trade liberalization (Sachs and Warner (1995) & Warziarg and Welch (20 ag_emplXlib_a Employment in agriculture X Liberalization dummy manuf_emplXlib_a Employment in manufacturing X Liberalization dummy agri_pc_gdpXlib_a Agriculture value added X Liberalization dummy manuf_pc_gdpXlib_a Manufacturing value added X Liberalization dummy polity2_d0_a Dummy if Polity II score < 0 polity2_d3_a Dummy if Polity II score < 3 polity2_d6_a Dummy if Polity II score < 6 presidential_a Presidential system parliamentary_a Parliamentary system dgdp_a importsplusexportsofgdp election Any election, DPI (1975-2010) exfixed2 Fixed exchange rate, coarse classifications 1 being fixed ## **3 EU** ## **3.1 Download** - [Dataset and documentation (ZIP, 146K)](/files/jfrieden/files/eu_files_0.zip) [**3.2 Online documentation**](/file://localhost/Users/APN/Dropbox/WCFIA/Frieden/Dataverse/files/eu_codebook.doc) **3.2.1 Note** All data updated through 1998 unless otherwise noted. **3.2.2 Dependent Variables** **Coefficient of Variation (COV)** coefficient of variation over 12-month period Jan-Dec exchange rates (currency vs DM). Calculated as standard deviation/mean, from IMF, *International Financial Statistics Yearbook*, various years. COV2 is COV\*100. **Depreciation (DEPREC)** annual depreciation of country currency vs DM. Calculated as (**XRT** – 1)\*100 (see below). **3.2.3 Macroeconomic Variables** **Lagged Growth Rate of GDP (GDPGRLAG)** Growth rate of GDP, lagged one year. Data for 1971-1979 figures from *Economic Survey of Europe, 1984-1985;* for 1980-1993 from *OECD Historical Studies: 1960-1993*. Updated with *OECD Economic Outlook*, 1999. **Lagged Unemployment Rate (UNEMPLAG)** - Percentage of the labor force unemployed, lagged one year (Standardized Rate used except for Greece). Data taken from OECD *Main Economic Indicators, Historical* *Studies:Prices, Labor and Wages 1962-1991*, OECD *Economic Outlook* 1995 (volume 58) and 1999 (volume 62), OECD *Main Economic Indicators, Historical Studies: 1960-1979*, and *Economic Survey of Europe, 1984-1985*. **Lagged Current Account as a Percent of GDP (CURACLAG)** Current account balance as a percentage of GDP, lagged one year. Data from OECD *Economic Outlook*, various years. **Difference in Terms of Trade Relative to Germany (DIFFTOFT)** Percentage point change in the terms of trade over the previous year, relative to Germany's. An increase in this figure signifies an improvement in Germany's terms of trade relative to the country in question. Data from IMF *International Financial Statistics Yearbook*, various years. NOTE: Updated with OECD data (percent change in export prices – percent change in import prices). The original description above says that a positive number indicates an increase in Germany's TOFT, but the reverse data (i.e., country X's chgTOFT – Germany's chgTOFT) matches the old data most closely. However, discrepancies do exist, so see the shaded columns in the dataset, which show my new calculations. I have left these as separate columns, rather than integrate them into the original DIFFTOFT variable. **Industrial Correlation with Germany (INDCOR)** Correlation coefficient comparing the percent contribution to GDP of each ISIC 1-digit category and 2-digit categories for manufacturing (ISIC code 3). Because industrial structure changes slowly, the correlation coefficient is calculated for 1970, 1980, and 1990 only. Data from the OECD's *Industrial Structure Statistics*, various years. Where data were missing from the OECD statistics, data were taken from the UN *Yearbook of Industrial Statistics*, various years. NOTE: Since these data change only each decade, data were held constant for 1995-1998 at 1994 levels. **Change in Consumer Prices (CPI) (%)** from IMF, /International Financial Statistics Yearbook/, various years. **Terms of Trade (TOFT)** % change in export prices - % change in import prices, over the previous year. From IMF, *International Financial Statistics*. Some country data unavailable. **Trade correlation (TRACOR)** correlation coefficient computed using exports in the country by sector (see INDCOR) and comparing with Germany's figure. NOTE: As with INDCOR, 1994 numbers held constant for 1995-1998. **Exchange rate against the DM (XRT)** End-of-year exchange rate of currency vs DM at time t (12/31/t), divided by exchange rate at time t-1. From IMF, *International Financial Statistics Yearbook*, various years. **Exchange rate against the Dollar (EXCHRATE)** average exchange rate of currency vs $ at time t, when t denotes the current year. **Exports to the EC as percent of GDP (ECX)** data from IMF, *Direction of Trade Statistics*, various years. **Exports to the DM Zone as percent of GDP (DMX)** data from IMF, *Direction of Trade Statistics*, various years. **Deposit Restrictions (DEPRES)** dummy for deposit restrictions, from Rose and IMF, *Exchange Arrangements*, various years. **Bilateral Payments with non-members (BIPAYNM)** dummy variable (1=yes), from Rose and IMF, *Exchange Arrangements*, various years. **Bilateral Payments with members (BIPAYM)** dummy variable (1=yes), from Rose and IMF, *Exchange Arrangements*, various years. **Capital Restrictions (CAPRES)** dummy variable (1=yes), from Rose and IMF, *Exchange Arrangements*, various years. **Capital Controls (CAPCTRL)** sum of the four previous variables, an index of capital controls (1-4, with 4 highest), from Rose and IMF, *Exchange Arrangements*, various years. **Trade balance (TRADE\_B1)** Trade balance in millions of dollars. Data from IMF, *International Financial Statistics Yearbook*, various years. **Trade balance as % of GDP (TBALGDP)** Data from IMF, *International Financial Statistics Yearbook*, various years. **Change in trade balance as % of GDP (TBALCHG)** Change in the trade balance from the previous year, in percentage terms. Constructed from data for trade balance and GDP in IMF, *International* *Financial Statistics Yearbook*, various years. Calculated as trade balance at time t – trade balance at time t-1, as percentage of GDP. **GDP** GDP in billions of local currency. **GDP\_BIL** GDP in billions of dollars. **GDP\_MIL** GDP in millions of dollars. **Government Deficit as % of GDP (DEFGDP)** Data updated from *OECD Economic Outlook*, general government financial balances, 1999. **3.2.4 Political Variables** **Cabinet Center of Gravity (CABCG)** Party composition of the cabinet, weighted by ideological scores using a scale constructed by Geoffrey Garrett. Data through 1991 provided by Geoff Garrett; updated using *European Journal of Political Research* Political Data Yearbooks, various years. Parties classified using codings by Castles and Mairs (1984, EJPR 12: 73-88). /NOTE: 1=far left, 2=social democratic, 3=Christian Democratic, 4=mainstream conservative, 5=far right./ **Election** Number of parliamentary elections per year (usually 1 or 0). Data obtained from Mackie, Thomas T. and Richard Rose *International Almanac of Electoral History* (Washington D.C.: Congressional Quarterly, 1991), *National Elections* (various years), and the *European Journal of Political Research* (various years).\*\* **% of Seats Held by Government Parties** Percentage of legislative seats won by the government parties in the election at time t, where t denotes the current observation (**SEATT**) and at time t-1 (**SEATT1**). Constructed in G. Bingham Powell, Jr. and Guy D. Whitten, “ A Cross-National Analysis of Economic Voting,” *American Journal of Political Science* 37(2): 391-414, 1993; updated using *European Journal of Political Research*, various years, and election data available at: .// **Number of Government Parties (GOVPTYS)** Number of parties in government (cabinet). Constructed in G. Bingham Powell, , Jr. and Guy D. Whitten, “A Cross-National Analysis of Economic Voting,” *American Journal of Political Science* 37(2): 391-414, 1993; updated using *European Journal of Political Research*, Political Data Yearbook, various years. Updated through 1997. **Endogenous Election (ENDELECT)** dummy if the parliamentary election at time t was endogenous. **Exogenous Election (EXELECTN)** dummy if the parliamentary election at time t was exogenous. **Legislative Center of Gravity (LEGISCG)** see CABCG above. Same scale applied to entire parliament at time t, based on number of seats won by each party in the most recent election. In election years, data were calculated as the weighted average of the pre-election parliament and the post-election parliament. Data calculated from *European Journal of Political Research* Political Data Yearbook, various years, and election/seat data available at: . Updated through 1997. **Government Ideology (GOVIDEO)** Constructed by Powell and Whitten (AJPS 37: 391-414) from average ratings of parties on a left-right scale in Castles and Mair's survey of country experts (EJPR 12: 73-88). For coalition governments, each party's score was weighted by the % of legislative seats it held in the cabinet. Data calculated from *European Journal of Political Research* Political Data Yearbook, various years. For years with multiple governments, data were calculated as a weighted average of the “old” and “new” governments. Updated through 1997. **Government Ideology Gap (GOVGAP)** Difference between the government parties with the lowest and highest Castles and Mairs ratings. Again, for years with multiple governments, data calculated as weighted average of old and new governments. Updated through 1997. **VOTET, VOTETM1, VOTETM2** Percentage of legislative seats won by the governments parties in the elections at times t, t-1, and t-2 (the three most recent elections). For election years, data are calculated as the weighted average of the outgoing and incoming governments' scores for all three variables. Updated through 1997. **BICAMOPP** dummy =1 when governing party did NOT control majority in second legislative chamber. Constructed from Powell and Whitten. **OPPCHAIR** dummy=1 when legislature had strong committee system with proportionate sharing. Constructed from Powell and Whitten. **WEAKPTY** dummy=1 if major parties lack internal cohesion in voting behavior. Constructed from Powell and Whitten. **3.2.5 Political Economy Variables** **Union Density (UNDENS)** union density, adjusted for unemployment and self-employment. Data is Visser, from **ADD G&W LINK**. This data is available through 1992-3, and replaces the old data, which was *net* union density (adjusted only for self-employment, not unemployment) and was available only through 1990. **Member of Snake/ERM (SNAKEMS)** Dichotomous variable = 1 if country is a member of either Snake or ERM, 0 if not. Data obtained from the *BIS Annual Reports*, various years, and updated using data available at **Central Bank Independence (CBI)** An index of central bank independence, running from 0 (least independent to 1 (most independent). Data from Cukierman, Webb and Neyapti (1992). **3.2.6 VARIABLES NOT YET UPDATED** **Capital Controls (CLOSED)** A measure of capital controls constructed by Dennis Quinn, described in Dennis Quinn, “The Correlates of Change in International Financial Regulation” in *American Political Science Review* 91(3): 531-552, 1997. His 15 point-scale measures “openness;” it is inverted here so that a higher number means more capital controls. Data obtained from the author. *NOTE: not yet updated*. **Manufactured Exports to DM Zone as % of GDP** Value of manufactured (SITC codes 6-8) exports to Germany, Belgium, Luxembourg and the Netherlands as a percentage of GDP. Data supplied by the UN from various years of their *Yearbook of International Trade Statistics*. *NOTE: not yet updated.* **Government Duration (GOVDUR)** number of months government was in office. *NOTE: current data are incorrect – need to update*. **Manufactured exports to the DM Zone (DMMFG1)** Value of manufactured (SITC codes 6-8) exports to Germany and Benelux as % of GDP. **Manufactured exports to the EC/EU (ECMFG1)** Value of manufactured (SITC codes 6-8) exports to the EC/EU as % of GDP. **Public sector employment (PUBEMP)** emailing Garrett for info on updated data availability. **Public sector unionization (PUBUNION)** emailing Garrett for info on updated data availability. **Foreign direct investment data** ECFDI and DMFDI