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The Protestant Fiscal Ethic: Religious Confession and Euro Skepticism in Germany

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  • Krapf, Matthias
  • Chadi, Adrian

Abstract

During the European sovereign debt crisis, most countries that ran into fiscal trouble had Catholic majorities, whereas countries with Protestant majorities were able to avoid fiscal problems. Survey data show that, within Germany, views on the euro crisis differ between Protestants and Non-Protestants, too. Concerns about the euro crisis have increased among Protestants during the crisis, and significantly reduce their subjective wellbeing only. We use the timing of survey interviews and news events in 2011 to account for the endogeneity of euro concerns. Emphasis on moral hazard concerns in Protestant theology may, thus, still shape economic preferences.

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  • Krapf, Matthias & Chadi, Adrian, 2015. "The Protestant Fiscal Ethic: Religious Confession and Euro Skepticism in Germany," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112833, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc15:112833
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    8. Arye L. Hillman & Niklas Potrafke, 2016. "Economic Freedom and Religion: An Empirical Investigation," CESifo Working Paper Series 6017, CESifo.
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    11. Arye L. Hillman & Niklas Potrafke, 2018. "Economic Freedom and Religion," Public Finance Review, , vol. 46(2), pages 249-275, March.
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    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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