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Public Attitudes Toward Fiscal Consolidation: Evidence from a Representative German Population Survey

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  • Bernd Hayo

    ()
    (University of Marburg)

  • Florian Neumeier

    ()
    (University of Marburg)

Abstract

The poor state of public finances in many countries has led to calls for fiscal consolidation. In practice, implementing concrete consolidation measures appears to meet with public resistance, suggesting that the success of consolidation efforts strongly depends on the popularity of the chosen measures. To identify public attitudes toward fiscal consolidation and alternative consolidation measures, we conducted a survey among 2,000 German citizens. Applying ordered and multinominal logit models, we test theory-based hypotheses about the determinants of individual attitudes toward public debt. We find that, inter alia, personal economic situation, time preferences, fiscal illusion, and trust in politicians exert a significant impact on attitudes toward fiscal consolidation and preferences for alternative consolidation measures.

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Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201351.

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Length: 33 pages
Date of creation: 2013
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Publication status: Forthcoming in
Handle: RePEc:mar:magkse:201351

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Keywords: Public debt; fiscal consolidation; sovereign debt crisis; public attitudes; Germany;

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