IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp403.html

The Attitudes towards the Euro: An Empirical Study Based on the German Socio-Economic Panel (SOEP)

Author

Listed:
  • Bettina Isengard
  • Thorsten Schneider

Abstract

This paper investigates the attitudes towards the Euro and their changes over time in Germany by using longitudinal micro data from the German Socio Economic Panel Study (SOEP). We observe that a large part of the German population was worried about the new currency before its implementation. Individual changes of worries can be explained by theories of self-perception and cognitive dissonance. According to these theories, concerns should diminish after the Euro notes and coins are distributed. In contrast, the theory of reactance predicts an increase, while the theories of attitude changes as learning processes offer both its increase and decrease. The latter seems to be the most suitable explanation for the development of concerns about the Euro. We discover that problems with the handling of the new money and the time of questioning are strong predictors. The time pattern goes hand in hand with the time of press coverage on price rises. As worries are connected with problems in handling the new money, future member states of the European Monetary Union should prepare their population in a better manner than the existing member states did.

Suggested Citation

  • Bettina Isengard & Thorsten Schneider, 2004. "The Attitudes towards the Euro: An Empirical Study Based on the German Socio-Economic Panel (SOEP)," Discussion Papers of DIW Berlin 403, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp403
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.41229.de/dp403.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ruud Muffels & Didier Fouarge, 2004. "The Role of European Welfare States in Explaining Resources Deprivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 68(3), pages 299-330, September.
    2. Pepermans, Roland & Verleye, Gino, 1998. "A unified Europe? How euro-attitudes relate to psychological differences between countries," Journal of Economic Psychology, Elsevier, vol. 19(6), pages 681-699, December.
    3. Meier, Katja & Kirchler, Erich, 1998. "Social representations of the euro in Austria," Journal of Economic Psychology, Elsevier, vol. 19(6), pages 755-774, December.
    4. Muller-Peters, Anke & Pepermans, Roland & Kiell, Guido & Battaglia, Nicole & Beckmann, Suzanne & Burgoyne, Carole & Farhangmehr, Minoo & Guzman, Gustavo & Kirchler, Erich & Koenen, Cordula, 1998. "Explaining attitudes towards the euro: Design of a cross-national study," Journal of Economic Psychology, Elsevier, vol. 19(6), pages 663-680, December.
    5. van Everdingen, Yvonne M. & van Raaij, W. Fred, 1998. "The Dutch people and the euro: A structural equations analysis relating national identity and economic expectations to attitude towards the euro," Journal of Economic Psychology, Elsevier, vol. 19(6), pages 721-740, December.
    6. Rainer Winkelmann, 2004. "Health care reform and the number of doctor visits-an econometric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 455-472.
    7. Luna-Arocas, Roberto & Guzman, Gustavo & Quintanilla, Ismael & Farhangmehr, Minoo, 2001. "The Euro and European identity: The Spanish and Portuguese case," Journal of Economic Psychology, Elsevier, vol. 22(4), pages 441-460, August.
    8. Meier-Pesti, Katja & Kirchler, Erich, 2003. "Nationalism and patriotism as determinants of European identity and attitudes towards the euro," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(6), pages 685-700, December.
    9. Bruce Headey & Robert Goodin & Ruud Muffels & Henk-Jan Dirven, 2000. "Is There a Trade-Off Between Economic Efficiency and a Generous Welfare State? A Comparison of Best Cases of `The Three Worlds of Welfare Capitalism’," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 50(2), pages 115-157, May.
    10. Meier-Pesti, Katja & Kirchler, Erich, 2003. "Attitudes towards the Euro by national identity and relative national status," Journal of Economic Psychology, Elsevier, vol. 24(3), pages 293-299, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Wunder, Christoph & Schwarze, Johannes & Krug, Gerhard & Herzog, Bodo, 2008. "Welfare effects of the euro cash changeover," European Journal of Political Economy, Elsevier, vol. 24(3), pages 571-586, September.
    3. Chadi, Adrian, 2015. "Concerns about the Euro and happiness in Germany during times of crisis," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 126-146.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bettina Isengard & Thorsten Schneider, 2006. "The euro and its perception in the German population," Discussion Papers 011, Europa-Universität Flensburg, International Institute of Management.
    2. Joanna Osińska, 2013. "Postawy wobec euro i ich determinanty," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 39-67.
    3. Krzysztof Tymicki, 2013. "Zamierzenia prokreacyjne a mo¿liwoœæ ich realizacji w kontekœcie czynników biologicznych," Working Papers 56, Institute of Statistics and Demography, Warsaw School of Economics.
    4. Osińska, Joanna, . "Postawy wobec euro i ich determinanty," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2013(10).
    5. Ferrari, L. & Lozza, E., 2005. "Psychological consequences on prices expectations of the currency as a unit of account," Journal of Economic Psychology, Elsevier, vol. 26(2), pages 313-325, April.
    6. Gamble, Amelie, 2006. "Euro illusion or the reverse? Effects of currency and income on evaluations of prices of consumer products," Journal of Economic Psychology, Elsevier, vol. 27(4), pages 531-542, August.
    7. Rojas, Mariano, 2011. "Poverty and psychological distress in Latin America," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 206-217, March.
    8. Chang Wen-Chun, 2008. "Toward Independence or Unification?," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 13(2), pages 124-153, January.
    9. 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.
    10. Dolls, Mathias, 2024. "An unemployment re-insurance scheme for the eurozone? Stabilizing and redistributive effects," European Economic Review, Elsevier, vol. 170(C).
    11. Eva Hofmann & Erich Kirchler & Bernadette Kamleitner, 2007. "Consumer Adaptation Strategies: From Austrian Shilling to the Euro," Journal of Consumer Policy, Springer, vol. 30(4), pages 367-381, December.
    12. Meier-Pesti, Katja & Kirchler, Erich, 2003. "Attitudes towards the Euro by national identity and relative national status," Journal of Economic Psychology, Elsevier, vol. 24(3), pages 293-299, June.
    13. Ariane Tichit, 2017. "Social representations of money: Contrast between citizens and local complementary currency members," Working Papers halshs-01576076, HAL.
    14. Francesco Devicienti & Valentina Gualtieri & Mariacristina Rossi, 2014. "The Persistence Of Income Poverty And Lifestyle Deprivation: Evidence From Italy," Bulletin of Economic Research, Wiley Blackwell, vol. 66(3), pages 246-278, July.
    15. Nolan, Anne & Nolan, Brian, 2003. "A Cross-Sectional Analysis of the Utilisation of GP Services in Ireland: 1987-2001," Papers HRBWP01, Economic and Social Research Institute (ESRI).
    16. Mozhaeva, Irina, 2022. "Inequalities in utilization of institutional care among older people in Estonia," Health Policy, Elsevier, vol. 126(7), pages 704-714.
    17. Claes H. de Vreese & Hajo G. Boomgaarden, 2005. "Projecting EU Referendums," European Union Politics, , vol. 6(1), pages 59-82, March.
    18. Greene, William, 2007. "Functional Form and Heterogeneity in Models for Count Data," Foundations and Trends(R) in Econometrics, now publishers, vol. 1(2), pages 113-218, August.
    19. Alfredo Cartone & Domenica Panzera, 2021. "Deprivation at local level: Practical problems and policy implications for the province of Milan," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 43-61, February.
    20. Adrian Chadi & Matthias Krapf, 2017. "The Protestant Fiscal Ethic: Religious Confession And Euro Skepticism In Germany," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1813-1832, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp403. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.