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Reprisals Remembered: German-Greek Conflict and Car Sales during the Euro Crisis

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  • Voth, Hans-Joachim
  • Fouka, Vasiliki

Abstract

Limited attention and selective memory are important forms of cognitive bias. We investigate how present events trigger selective recall, thereby changing economic behavior. The 2010-14 sovereign debt crisis in Greece created massive political conflict between the German and Greek governments. During the same period, German car sales declined sharply. Effects differed according to the actions of German troops during the occupation of Greece, 1941-44. Declines in German market share were much larger in areas where the Germans carried out massacres. Current events can reactivate past memories selectively, even in the same country, having a large effect on purchasing behavior.

Suggested Citation

  • Voth, Hans-Joachim & Fouka, Vasiliki, 2013. "Reprisals Remembered: German-Greek Conflict and Car Sales during the Euro Crisis," CEPR Discussion Papers 9704, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:9704
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    3. Cuadras-Morató Xavier & Raya Josep Maria, 2016. "Boycott or Buycott?: Internal Politics and Consumer Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 185-218, January.
    4. Einstoss Sebastian, 2023. "Todo está guardado en la memoria: el efecto de la violencia de estado en Argentina (Versión preliminar)," Asociación Argentina de Economía Política: Working Papers 4648, Asociación Argentina de Economía Política.
    5. Karsten Müller & Carlo Schwarz, 2021. "Fanning the Flames of Hate: Social Media and Hate Crime [Radio and the Rise of The Nazis in Prewar Germany]," Journal of the European Economic Association, European Economic Association, vol. 19(4), pages 2131-2167.
    6. Mario F. Carillo, 2022. "Fascistville: Mussolini’s new towns and the persistence of neo-fascism," Journal of Economic Growth, Springer, vol. 27(4), pages 527-567, December.
    7. Fontana, Nicola & Nannicini, Tommaso & Tabellini, Guido, 2023. "Historical roots of political extremism: The effects of Nazi occupation of Italy," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 723-743.
    8. Sequeira, Sandra & Nardotto, Mattia, 2021. "Identity, Media and Consumer Behavior," CEPR Discussion Papers 15765, C.E.P.R. Discussion Papers.
    9. Adeel Malik & Rinchan Ali Mirza & Faiz Ur Rehman, 2023. "Frontier rule and conflict," WIDER Working Paper Series wp-2023-128, World Institute for Development Economic Research (UNU-WIDER).
    10. Dominic Rohner & Mathias Thoenig, 2021. "The Elusive Peace Dividend of Development Policy: From War Traps to Macro Complementarities," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 111-131, August.
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    More about this item

    Keywords

    Boycott; Car sales; German-greek relations; Political conflict; Sovereign debt crisis;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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