Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113742
Authors: 
Costa-i-Font, Joan
Cowell, Frank
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5412
Abstract: 
How important is spatial identity in shifting preferences for redistribution? This paper takes advantage of within-country 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 redistribution. 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.
Subjects: 
spatial identity
Europe
welfare state support
JEL: 
D69
O52
H53
Document Type: 
Working Paper

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