A different look at Lenin’s legacy: Social capital and risk taking in the Two Germanies
AbstractWhat are the long-term effects of Communism on economically relevant notions such as social trust, fairness, and scope of cooperation? To answer this question, we study the post-unification trajectory of convergence between East and West German individuals with regard to trust, cooperation, and risk. Our hypotheses are derived from a model of German unification that incorporates individual responses both to incentives and to values inherited from earlier generations as recently suggested in the literature. Using two waves of balanced panel data, we find that despite twenty years of unification East Germans are still characterized by a persistent level of social distrust. In comparison to West Germans, they are less inclined to see others as cooperative. East Germans are also found to have been more risk loving than West Germans. However, risk attitudes fully converged recently.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Comparative Economics.
Volume (Year): 41 (2013)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622864
Social trust; Risk attitudes; Political regimes; German unification;
Other versions of this item:
- Heineck, Guido & Süssmuth, Bernd, 2012. "A different look at Lenin's legacy: Social capital and risk taking in the two Germanies," Working Papers 118, University of Leipzig, Faculty of Economics and Management Science.
- P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holger Bonin & Amelie Constant & Konstantinos Tatsiramos & Klaus F. Zimmermann, 2006.
"Native-Migrant Differences in Risk Attitudes,"
Discussion Papers of DIW Berlin
560, DIW Berlin, German Institute for Economic Research.
- Bonin, Holger & Constant, Amelie & Tatsiramos, Konstantinos & Zimmermann, Klaus F, 2006. "Native-Migrant Differences in Risk Attitudes," CEPR Discussion Papers 5587, C.E.P.R. Discussion Papers.
- Bonin, Holger & Constant, Amelie F. & Tatsiramos, Konstantinos & Zimmermann, Klaus F., 2006. "Native-Migrant Differences in Risk Attitudes," IZA Discussion Papers 1999, Institute for the Study of Labor (IZA).
- Boltho, Andrea & Carlin, Wendy & Scaramozzino, Pasquale, 1997.
"Will East Germany Become a New Mezzogiorno?,"
Journal of Comparative Economics,
Elsevier, vol. 24(3), pages 241-264, June.
- Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010.
"Induced Civic Pride and Integration,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 72(2), pages 202-220, 04.
- Konrad B. Burchardi & Tarek A. Hassan, 2011.
"The Economic Impact of Social Ties: Evidence from German Reunification,"
SOEPpapers on Multidisciplinary Panel Data Research
405, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Konrad B. Burchardi & Tarek A. Hassan, 2013. "The Economic Impact of Social Ties: Evidence from German Reunification," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 1219-1271.
- Burchardi, Konrad B. & Hassan, Tarek, 2011. "The Economic Impact of Social Ties: Evidence from German Reunification," CEPR Discussion Papers 8470, C.E.P.R. Discussion Papers.
- Konrad B. Burchardi & Tarek Alexander Hassan, 2011. "The Economic Impact of Social Ties: Evidence from German Reunification," NBER Working Papers 17186, National Bureau of Economic Research, Inc.
- repec:ese:iserwp:2006-31 is not listed on IDEAS
- Joel Slemrod & Peter Katuscak, 2002.
"Do Trust and Trustworthiness Pay Off?,"
NBER Working Papers
9200, National Bureau of Economic Research, Inc.
- Helmut Rainer & Michael Siedler, 2006.
"Does democracy foster trust?,"
Discussion Paper Series, Department of Economics
200602, Department of Economics, University of St. Andrews.
- Möhlmann, Axel, 2013. "Persistence or Convergence? The East-West Tax Morale Gap in Germany," MPRA Paper 50766, University Library of Munich, Germany, revised 27 Jul 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.