IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

A Culture Based Theory of Fiscal Union Desirability

  • Guiso, Luigi

    (EIEF & CEPR)

  • Herrera, Helios

    (HEC Montreal)

  • Morelli, Massimo

    (Columbia University)

If voters of different countries adhere to different and deeply rooted cultural norms, the country leaders may fi nd it impossible to agree on efficient policies especially in hard times. The conformity constraint -political leaders’ unwillingness or impossibility to depart from these norms - has resulted in lack of timely intervention which has ampli ed an initially manageable debt crisis for some European countries to the point of threatening the Euro as a single currency. We show the conditions under which the introduction of a fi scal union can be obtained with consensus and be bene cial. Perhaps counter- intuitively, cultural diversity makes a fi scal union even more desirable. Some general lessons can also be drawn on the interaction of cultural evolution and institutional choice.

If 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.

File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/research/wpfeed/138_2013_guiso_herrera__morelli.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Jane Snape)


Download Restriction: no

Paper provided by Competitive Advantage in the Global Economy (CAGE) in its series CAGE Online Working Paper Series with number 138.

as
in new window

Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:cge:wacage:138
Contact details of provider: Postal: CV4 7AL COVENTRY
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Alberto F. Alesina & Paola Giuliano & Nathan Nunn, 2011. "On the Origins of Gender Roles: Women and the Plough," NBER Working Papers 17098, National Bureau of Economic Research, Inc.
  2. Nico Voigtlaender & Hans-Joachim Voth, 2011. "Persecution Perpetuated: The Medieval Origins of Anti-Semitic Violence in Nazi Germany," NBER Working Papers 17113, National Bureau of Economic Research, Inc.
  3. Nathan Nunn, 2012. "Culture and the Historical Process," NBER Working Papers 17869, National Bureau of Economic Research, Inc.
  4. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
  5. Silvia Ardagna & Francesco Caselli, 2012. "The Political Economy of the Greek Debt Crisis: A Tale of Two Bailouts," CEP Special Papers 25, Centre for Economic Performance, LSE.
  6. Iris Bohnet & Fiona Greig & Benedikt Herrmann & Richard Zeckhauser, 2007. "Betrayal Aversion: Evidence from Brazil, China, Oman, Switzerland, Turkey, and the United States," Discussion Papers 2007-08, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  7. Bohnet, Iris & Zeckhauser, Richard, 2004. "Trust, risk and betrayal," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 467-484, December.
  8. Emmanuel Farhi & Ivan Werning, 2014. "Fiscal Unions," Working Paper 70961, Harvard University OpenScholar.
  9. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
  10. José Tavares & Jaime Luque and Massimo Morelli, 2012. "A Volatility-based Theory of Fiscal Union Formation," EUI-RSCAS Working Papers 21, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  11. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
  12. George A. Akerlof, 2007. "The Missing Motivation in Macroeconomics," American Economic Review, American Economic Association, vol. 97(1), pages 5-36, March.
  13. Gorodnichenko, Yuriy & Roland, Gerald, 2010. "Culture, Institutions and the Wealth of Nations," IZA Discussion Papers 5187, Institute for the Study of Labor (IZA).
  14. Yuriy Gorodnichenko & Gerard Roland, 2011. "Which Dimensions of Culture Matter for Long-Run Growth?," American Economic Review, American Economic Association, vol. 101(3), pages 492-98, May.
  15. repec:eui:euiwps:eco2010/14 is not listed on IDEAS
  16. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-92, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cge:wacage:138. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Snape)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.