IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v78y2023ics0176268023000010.html
   My bibliography  Save this article

Is european attachment sufficiently strong to support an EU fiscal capacity: Evidence from a conjoint experiment

Author

Listed:
  • Beetsma, Roel
  • Burgoon, Brian
  • Nicoli, Francesco

Abstract

Based on a conjoint survey experiment with 10,000 respondents from France, Germany, Italy, Netherlands and Spain at the end of March/beginning of April 2020, we explore how individual characteristics shape support among Eurozone citizens for a European Union (EU) budgetary assistance instrument to combat adverse temporary or permanent economic shocks hitting EU Member States. We consider particularly the role of socioeconomic factors, such as income and education, covid fears and European attachment. Remarkably, how covid worries and European attachment affect the support for specific designs of the assistance instrument is not affected by other factors, in particular not by socioeconomic factors. These latter factors play an important role affecting support, independent of European attachment. Programs with European Commission monitoring (and recommendations) and cross-country redistribution, possibly even mandatory towards poor countries, can count on stronger support from those with higher European attachment. Those with strong covid fears are generally more in favour of EU budgetary assistance, mandatory spending of assistance on healthcare and redistribution to poor countries. Programs with Commission monitoring (and recommendations) receive extra support from high-income and highly-educated individuals. Also, the latter group specifically favors potential or mandatory cross-border redistribution. The independent role of individual European attachment suggests that instruments other than socioeconomic policies, e.g. better information provision about its use, may help raise support for an EU assistance instrument.

Suggested Citation

  • Beetsma, Roel & Burgoon, Brian & Nicoli, Francesco, 2023. "Is european attachment sufficiently strong to support an EU fiscal capacity: Evidence from a conjoint experiment," European Journal of Political Economy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:poleco:v:78:y:2023:i:c:s0176268023000010
    DOI: 10.1016/j.ejpoleco.2023.102357
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268023000010
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejpoleco.2023.102357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cevat Giray Aksoy & Antonio Cabrales & Mathias Dolls & Ruben Durante & Lisa Windsteiger, 2021. "Calamities, Common Interests, Shared Identity: What Shapes Altruism and Reciprocity?," EconPol Working Paper 64, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Grégory Claeys, 2017. "The missing pieces of the euro architecture," Policy Contributions 22566, Bruegel.
    3. Chase Foster & Jeffry Frieden, 2017. "Crisis of trust: Socio-economic determinants of Europeans’ confidence in government," European Union Politics, , vol. 18(4), pages 511-535, December.
    4. Helge Berger & Giovanni Dell’Ariccia & Maurice Obstfeld, 2019. "Revisiting the Economic Case for Fiscal Union in the Euro Area," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(3), pages 657-683, September.
    5. Nathaniel G Arnold & Bergljot B Barkbu & H. Elif Ture & Hou Wang & Jiaxiong Yao, 2018. "A Central Fiscal Stabilization Capacity for the Euro Area," IMF Staff Discussion Notes 18/03, International Monetary Fund.
    6. Sascha O Becker & Thiemo Fetzer & Dennis Novy, 2017. "Who voted for Brexit? A comprehensive district-level analysis," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(92), pages 601-650.
    7. Barone, Guglielmo & Kreuter, Helena, 2021. "Low-wage import competition and populist backlash: The case of Italy," European Journal of Political Economy, Elsevier, vol. 67(C).
    8. Koester, Gerrit & Sondermann, David, 2018. "A euro area macroeconomic stabilisation function: assessing options in view of their redistribution and stabilisation properties," Occasional Paper Series 216, European Central Bank.
    9. Colantone, Italo & Stanig, Piero, 2018. "Global Competition and Brexit," American Political Science Review, Cambridge University Press, vol. 112(2), pages 201-218, May.
    10. Michael M. Bechtel & Jens Hainmueller & Yotam Margalit, 2014. "Preferences for International Redistribution: The Divide over the Eurozone Bailouts," American Journal of Political Science, John Wiley & Sons, vol. 58(4), pages 835-856, October.
    11. Leeper, Thomas J. & Hobolt, Sara B. & Tilley, James, 2020. "Measuring Subgroup Preferences in Conjoint Experiments," Political Analysis, Cambridge University Press, vol. 28(2), pages 207-221, April.
    12. Jha, Priyaranjan & Gozgor, Giray, 2019. "Globalization and taxation: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 59(C), pages 296-315.
    13. Mr. Nathaniel G Arnold & Ms. Bergljot B Barkbu & H. Elif Ture & Hou Wang & Jiaxiong Yao, 2018. "A Central Fiscal Stabilization Capacity for the Euro Area," IMF Staff Discussion Notes 2018/003, International Monetary Fund.
    14. Francesco Nicoli & Theresa Kuhn & Brian Burgoon, 2020. "Collective Identities, European Solidarity: Identification Patterns and Preferences for European Social Insurance," Journal of Common Market Studies, Wiley Blackwell, vol. 58(1), pages 76-95, January.
    15. Brian Burgoon & Theresa Kuhn & Francesco Nicoli & Frank Vandenbroucke, 2022. "Unemployment risk-sharing in the EU: How policy design influences citizen support for European unemployment policy," European Union Politics, , vol. 23(2), pages 282-308, June.
    16. Hainmueller, Jens & Hopkins, Daniel J. & Yamamoto, Teppei, 2014. "Causal Inference in Conjoint Analysis: Understanding Multidimensional Choices via Stated Preference Experiments," Political Analysis, Cambridge University Press, vol. 22(1), pages 1-30, January.
    17. Nicolas Carnot & Magdalena Kizior & Gilles Mourre, 2017. "Fiscal stabilisation in the Euro-Area: A simulation exercise," Working Papers CEB 17-025, ULB -- Universite Libre de Bruxelles.
    18. Franz R. Hahn, 2014. "Culture, Geography and Institutions: Empirical Evidence from Small‐scale Banking," Economic Journal, Royal Economic Society, vol. 124(577), pages 859-886, June.
    19. Blesse, Sebastian & Bordignon, Massimo & Boyer, Pierre C. & Carapella, Piergiorgio & Heinemann, Friedrich & Janeba, Eckhard & Raj, Anasuya, 2021. "The future of the European fiscal union: Survey results from members of national parliaments in France, Italy and Germany," ZEW Discussion Papers 21-055, ZEW - Leibniz Centre for European Economic Research.
    20. Fedra Negri & Francesco Nicoli & Theresa Kuhn, 2021. "Common currency, common identity? The impact of the Euro introduction on European identity," European Union Politics, , vol. 22(1), pages 114-132, March.
    21. Chase Foster & Jeffry Frieden, 2021. "Economic determinants of public support for European integration, 1995–2018," European Union Politics, , vol. 22(2), pages 266-292, June.
    22. Burriel, Pablo & Chronis, Panagiotis & Freier, Maximilian & Hauptmeier, Sebastian & Reiss, Lukas & Stegarescu, Dan & Van Parys, Stefan, 2020. "A fiscal capacity for the euro area: lessons from existing fiscal-federal systems," Occasional Paper Series 239, European Central Bank.
    23. Giray Gozgor, 2022. "The role of economic uncertainty in the rise of EU populism," Public Choice, Springer, vol. 190(1), pages 229-246, January.
    24. Cevat Giray Aksoy & Antonio Cabrales & Mathias Dolls & Ruben Durante & Lisa Windsteiger, 2021. "Calamities, Common Interests, Shared Identity: What Shapes Social Cohesion in Europe?," CESifo Working Paper Series 9112, CESifo.
    25. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    26. Hahm, Hyeonho & König, Thomas & Osnabrügge, Moritz & Frech, Elena, 2019. "Who Settles Disputes? Treaty Design and Trade Attitudes Toward the Transatlantic Trade and Investment Partnership (TTIP)," International Organization, Cambridge University Press, vol. 73(4), pages 881-900, October.
    27. Angelopoulos, Konstantinos & Economides, George & Kammas, Pantelis, 2012. "Does cabinet ideology matter for the structure of tax policies?," European Journal of Political Economy, Elsevier, vol. 28(4), pages 620-635.
    28. Beblavý, Miroslav & Lenaerts, Karolien, 2017. "Feasibility and Added Value of a European Unemployment Benefits Scheme," CEPS Papers 12230, Centre for European Policy Studies.
    29. Kai Gehring, 2022. "Can External Threats Foster a European Union Identity? Evidence from Russia’s Invasion of Ukraine," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1489-1516.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roel Beetsma & Brian Burgoon & Francesco Nicoli & Anniek de Ruijter & Frank Vandenbroucke, 2022. "What kind of EU fiscal capacity? Evidence from a randomized survey experiment in five European countries in times of corona," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(111), pages 411-459.
    2. Beetsma, Roel & Cimadomo, Jacopo & van Spronsen, Josha, 2024. "One scheme fits all: A central fiscal capacity for the EMU targeting eurozone, national and regional shocks," European Economic Review, Elsevier, vol. 165(C).
    3. Dolls, Mathias, 2024. "An unemployment re-insurance scheme for the eurozone? Stabilizing and redistributive effects," European Economic Review, Elsevier, vol. 170(C).
    4. Kaufmann, Christoph & Attinasi, Maria Grazia & Hauptmeier, Sebastian, 2023. "Macroeconomic stabilisation properties of a euro area unemployment insurance scheme," Journal of Economic Dynamics and Control, Elsevier, vol. 153(C).
    5. Cimadomo, Jacopo & Gordo Mora, Esther & Palazzo, Alessandra Anna, 2022. "Enhancing private and public risk sharing: lessons from the literature and reflections on the COVID-19 crisis," Occasional Paper Series 306, European Central Bank.
    6. Francesco Spadafora, 2020. "Completing the Economic and Monetary Union: Wisdom Come Late?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 379-409, November.
    7. Francesco Spadafora, 2019. "European integration in the time of mistrust," Questioni di Economia e Finanza (Occasional Papers) 512, Bank of Italy, Economic Research and International Relations Area.
    8. Nicoletta Batini & Francesco Lamperti & Andrea Roventini, 2020. "Reducing risk while sharing it: a fiscal recipe for the EU at the time of COVID-19," SciencePo Working papers Main hal-04090084, HAL.
    9. Laura Arnemann & Kai A Konrad & Niklas Potrafke, 2021. "Collective memories on the 2010 European debt crisis," European Union Politics, , vol. 22(4), pages 762-784, December.
    10. Brian Burgoon & Theresa Kuhn & Francesco Nicoli & Frank Vandenbroucke, 2022. "Unemployment risk-sharing in the EU: How policy design influences citizen support for European unemployment policy," European Union Politics, , vol. 23(2), pages 282-308, June.
    11. Jan Priewe, 2021. "Reforming the Fiscal Rulebook for the Euro Area – and the Challenge of Old and New Public Debt," IMK Studies 72-2021, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    12. European Fiscal Board (EFB), 2020. "2020 annual report of the European Fiscal Board," Annual reports 2020, European Fiscal Board.
    13. Dolls, Mathias & Wehrhöfer, Nils, 2021. "Attitudes towards euro area reforms: Evidence from a randomized survey experiment," European Journal of Political Economy, Elsevier, vol. 67(C).
    14. Tukiainen, Janne & Blesse, Sebastian & Bohne, Albrecht & Giuffrida, Leonardo M. & Jääskeläinen, Jan & Luukinen, Ari & Sieppi, Antti, 2024. "What are the priorities of bureaucrats? Evidence from conjoint experiments with procurement officials," Journal of Economic Behavior & Organization, Elsevier, vol. 227(C).
    15. Massimo Amato & Everardo Belloni & Paolo Falbo & Lucio Gobbi, 2021. "Europe, public debts, and safe assets: the scope for a European Debt Agency," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 823-861, October.
    16. Sascha Buetzer, 2022. "Advancing the Monetary Policy Toolkit through Outright Transfers," IMF Working Papers 2022/087, International Monetary Fund.
    17. Monika Bauhr & Nicholas Charron, 2024. "Europe around the corner? How border proximity and quality of government explains European identity," European Union Politics, , vol. 25(2), pages 376-395, June.
    18. Nicoli, Francesco & van der Duin, David & Burgoon, Brian, 2023. "Which Energy Security Union? An experiment on public preferences for energy union alternatives in 5 western European countries," Energy Policy, Elsevier, vol. 183(C).
    19. Roel Beetsma & Simone Cima & Jacopo Cimadomo, 2021. "Fiscal Transfers without Moral Hazard?," International Journal of Central Banking, International Journal of Central Banking, vol. 17(3), pages 95-153, September.
    20. Alessandro Caiani & Ermanno Catullo, 2023. "Fiscal Transfers and Common Debt in a Monetary Union: A Multi-Country Agent Based-Stock Flow Consistent Model," LEM Papers Series 2023/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    More about this item

    Keywords

    European attachment; EU budgetary assistance; Conjoint experiment; Temporary or permanent shocks; Stabilization; Conditions; Taxation; Redistribution; Individual characteristics; Socioeconomic factors; Covid fears;
    All these keywords.

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:78:y:2023:i:c:s0176268023000010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.