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Good Bye Lenin Revisited: East-West Preferences Three Decades after German Reunification

Author

Listed:
  • Bondar Mariia

    (Charles River Associates, Munich, Germany)

  • Fuchs-Schündeln Nicola

    (Goethe University Frankfurt and CEPR, Frankfurt, Germany)

Abstract

In this paper, we document that living under Communism versus Capitalism has lasting effects on preferences for a strong government. Relying on the natural experiment of German reunification and extending the analysis of Alesina and Fuchs-Schündeln (2007), we show that East Germans still have stronger preferences for redistribution than West Germans 27 years after reunification. While convergence of preferences occurs, the speed of convergence decreases significantly over time. Evidence from cohorts born after German reunification points towards significant intergenerational transmission of preferences.

Suggested Citation

  • Bondar Mariia & Fuchs-Schündeln Nicola, 2023. "Good Bye Lenin Revisited: East-West Preferences Three Decades after German Reunification," German Economic Review, De Gruyter, vol. 24(1), pages 97-119, February.
    • Handle: RePEc:bpj:germec:v:24:y:2023:i:1:p:97-119:n:2
    DOI: 10.1515/ger-2022-0042
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    References listed on IDEAS

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