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European identity and redistributive preferences

Costa-Font, Joan and Cowell, Frank (2015) European identity and redistributive preferences. CESifo working paper (5412). CESifo Group, Munich, Germany.

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Abstract

How important is spatial identity in shifting preferences for redistribution? This paper takes advantage of within-country variability in the adoption of a single currency as an instrument to examine the impact of the rescaling of spatial identity in Europe. We draw upon data from the last three decades of waves of the European Values Survey and we examine the impact of joining the single currency on preferences for redistribution. Our instrumentation strategy relies on using the exogenous effect of joining a common currency, alongside a battery of robustness checks and alternative instruments. Our findings suggest that joining the euro has a boosting effect on European identity; an opposite and comparable effect is found for national pride. We find that European identity increases preferences for redistribution, and that national pride exerts an equivalent reduction in preferences for redistribution.

Item Type: Monograph (Working Paper)
Official URL: https://www.cesifo-group.de/ifoHome.html
Additional Information: © 2015 The Authors
Divisions: Economics
European Institute
Social Policy
Centre for Economic Performance
STICERD
Centre for Analysis of Social Exclusion
Subjects: J Political Science > JN Political institutions (Europe)
JEL classification: D - Microeconomics > D6 - Welfare Economics > D60 - General
H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe
Sets: Departments > Economics
Departments > European Institute
Departments > Social Policy
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Research centres and groups > Centre for Analysis of Social Exclusion (CASE)
Date Deposited: 01 Jul 2015 14:14
Last Modified: 22 Mar 2019 00:03
Funders: STICERD
URI: http://eprints.lse.ac.uk/id/eprint/62601

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