To study the consequences of this cancellation, we used new data from the monthly reports of the Deutsche Bundesbank from 1948 to 1960. These reports provide detailed statistics of German finances and an account of the evolution of the German economy on a monthly basis. Notes: The dependent variable is the level of real expenditure per capita. “All other categories of expenditure” of the control group include the administration of justice, agriculture, Church and culture, defence, financial management, internal administration, regional and local expenditure, public security and order, trade and war charges. The period before the LDA is 1948-1952 and the post-LDA period is 1953-1962. Average values and default errors are estimated by linear regression. Robust standard errors are in parentheses. P values are directly lower than standard errors and robust t statistics are shown in parentheses, ***P < 0.01; **P < 0.05; *P < 0.1. Using new data from the Macrohistory database (Jordà, Schularick and Taylor 2017) this counterfactual "synthetic control" is estimated on the basis of the values of the predictors of the result (exports, GDP per capita, population level and inflation) in the comparator countries (Australia, Belgium, Canada, Finland, France, Italy, Japan, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United States) between 1948 and 1964.

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