Growing Up in a Recession: Beliefs and the Macroeconomy

Antonio Spilimbergo and Paola Giuliano

No 7399, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Do generations growing up during recessions have different socio-economic beliefs than generations growing up in good times? We study the relationship between recessions and beliefs by matching macroeconomic shocks during early adulthood with self-reported answers from the General Social Survey. Using time and regional variations in macroeconomic conditions to identify the effect of recessions on beliefs, we show that individuals growing up during recessions tend to believe that success in life depends more on luck than on effort, support more government redistribution, but are less confident in public institutions. Moreover, we find that recessions have a long-lasting effect on individuals? beliefs.

Keywords: Belief formation; Macroeconomic shocks; Recession; Role of the governement (search for similar items in EconPapers)
JEL-codes: E60 P16 Z13 (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-cba, nep-mac and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (103)

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Related works:
Working Paper: Growing Up in a Recession: Beliefs and the Macroeconomy (2009)
Working Paper: Growing Up in a Recession: Beliefs and the Macroeconomy (2009)
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