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European identity and redistributive preferences

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  • Costa-i-Font, Joan
  • Cowell, Frank

Abstract

How important is spatial identity in shifting preferences for redistribution? This paper takes advantage of withincountry 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 re-distribution. 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

  • Costa-i-Font, Joan & Cowell, Frank, 2015. "European identity and redistributive preferences," LSE Research Online Documents on Economics 63802, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:63802
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    File URL: http://eprints.lse.ac.uk/63802/
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    References listed on IDEAS

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    Cited by:

    1. Anne-Laure Delatte & Clemens Fuest & Daniel Gros & Friedrich Heinemann & Martin Kocher & Roberto Tamborini, 2017. "The Future of Eurozone Fiscal Governance," EconPol Policy Reports 1, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. 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.

    More about this item

    Keywords

    Spatial identity; Europe; welfare state support;

    JEL classification:

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

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