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European Identity and Redistributive Preferences

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  • Joan Costa Font
  • Frank Cowell

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.

Suggested Citation

  • Joan Costa Font & Frank Cowell, 2015. "European Identity and Redistributive Preferences," CEP Discussion Papers dp1362, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1362
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. European Identity and Redistributive Preferences
      by maximorossi in NEP-LTV blog on 2016-07-29 06:04:49

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    Cited by:

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    2. Mathias Dolls, 2019. "An Unemployment Re-Insurance Scheme for the Eurozone? Stabilizing and Redistributive Effects," EconPol Policy Reports 10, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Maurizio Bussolo & Ada Ferrer‐i‐Carbonell & Anna Giolbas & Iván Torre, 2021. "I Perceive Therefore I Demand: The Formation of Inequality Perceptions and Demand for Redistribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 835-871, December.
    4. Tom Coupé & Natalia Chaban, 2018. "The Impact of the European Song Contest on European Identity," Working Papers in Economics 18/03, University of Canterbury, Department of Economics and Finance.
    5. Sarah Ciaglia & Clemens Fuest & Friedrich Heinemann, 2018. "What a feeling?! How to promote ‘European Identity’," EconPol Policy Reports 9, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Joan Costa-i-Font & Jorge García-Hombrados & Anna Nicińska, 2020. "Long-Lasting Effects of Communist Indoctrination in School: Evidence from Poland," CESifo Working Paper Series 8766, CESifo.

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    More about this item

    Keywords

    Spatial identity; Europe; welfare state support;
    All these keywords.

    JEL classification:

    • D69 - Microeconomics - - Welfare Economics - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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