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Can a common currency foster a shared social identity across different nations? The case of the Euro

Author

Listed:
  • Franz Buscha
  • Daniel Muller
  • Lionel Page
Abstract
Fostering the emergence of a "European identity" was one of the declared goals of the euro adoption. Now, years after the physical introduction of the common currency, we investigate whether there has been an effect on a shared European identity. We use two different datasets in order to assess the impact of the euro adoption on the fostering of a self-declared "European Identity". We find that the effect of the euro is statistically insignificant although it is precisely estimated. This result holds important implications for European policy makers. It also sheds new light on the formation of social identities.

Suggested Citation

  • Franz Buscha & Daniel Muller & Lionel Page, 2017. "Can a common currency foster a shared social identity across different nations? The case of the Euro," Working Papers 2017-03, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2017-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Social Identity; European Integration; Currency Union; Difference-in-Difference;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H8 - Public Economics - - Miscellaneous Issues
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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