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European identity and redistributive preferences

Costa-i-Font, Joan and Cowell, Frank (2015) European identity and redistributive preferences. CEP Discussion Papers (CEPDP1362). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

How important is spatial identity in shifting preferences for redistribution? This paper takes advantage of withincountry 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 re-distribution. 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 (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2015 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HV Social pathology. Social and public welfare. Criminology
J Political Science > JN Political institutions (Europe)
JEL classification: D - Microeconomics > D6 - Welfare Economics > D69 - Other
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: Research centres and groups > Centre for Economic Performance (CEP)
Series: Working Papers > CEP Discussion Papers
Date Deposited: 29 Sep 2015 15:03
Last Modified: 10 Jul 2017 08:31
Funders: Economic and Social Research Council, STICERD
URI: http://eprints.lse.ac.uk/id/eprint/63802

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