Public support for the single European currency, the euro, 1990 to 2011. Does the financial crisis matter?

Felicitas Nowak-Lehmann D., Felix Roth (CEPS, Brussels) and Lars Lonung (university of Lund, Sweden)
Authors registered in the RePEc Author Service: Felicitas Nowak-Lehmann D.

No 5160, EcoMod2013 from EcoMod

Abstract: This paper analyses the evolution of public support for the single European currency, the euro, from 1990 to 2011, focusing on the most recent period of financial and sovereign debt crisis. Exploring a huge database of more than half a million observations covering the 12 original euro area member countries, we find that the ongoing crisis has only marginally reduced citizens’ support for the euro. To determine support for the euro we use two data sets: (1) panel data (bi-annual) to model the impact of the macroeconomic environment on the support for the euro (Dynamic Feasible Generalized Least Squares (DFGLS) estimation) and (2) household data to model the micoeconomic impact of the macro environment and its perception on the support for the euro (probit analysis). Our finding of a only marginally reduced citizens' support for the euro during the financial crisis is in stark contrast to a sharp fall in public trust in the European Central Bank. We conclude that the crisis – at least so far - has hardly dented popular support for the euro while the central bank supplying the single currency has lost sharply in public trust. Thus, the euro appears to have established a credibility of its own – separate from the institutional framework behind the euro.

Keywords: Euro zone countries; Impact and scenario analysis; EU enlargement (search for similar items in EconPapers)
Date: 2013-06-21
New Economics Papers: this item is included in nep-cba and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ecomod.net/system/files/EcoMod%20-%20Public ... 0December%202012.pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://ecomod.net/system/files/EcoMod%20-%20Public%20support%20for%20the%20euro%20-%20Roth%20Jonung%20Nowak-Lehmann%20-%20%2011%20December%202012.pdf [301 Moved Permanently]--> https://ecomod.net/system/files/EcoMod%20-%20Public%20support%20for%20the%20euro%20-%20Roth%20Jonung%20Nowak-Lehmann%20-%20%2011%20December%202012.pdf)

Related works:
Working Paper: Public Support for the Single European Currency, the Euro, 1990 to 2011. Does the Financial Crisis Matter? (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekd:004912:5160

Access Statistics for this paper

More papers in EcoMod2013 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().