The Financial Drivers of Populism in Europe

Luigi Guiso, Massimo Morelli, Tommaso Sonno and Helios Herrera

No 17332, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper identifies a specific channel through which the financial crisis has fostered populism. The financial crisis has extended economic insecurity also to segments of the population untouched by the globalization and immigration shocks. To establish causality, we use a pseudo-panel analysis and instrument the economic insecurity of different cohorts leveraging on a new methodology designed to highlight the different sensitivity to financial constraints for people in different occupations. On the supply side, we trace from manifestos the policy positions of old and new parties, showing that the supply of populism had the largest jump right after the financial crisis.

Keywords: Demand and supply of populism; Financial crisis; Fiscal space; Age-earning profiles (search for similar items in EconPapers)
Date: 2022-05
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Related works:
Working Paper: The Financial Drivers of Populism in Europe (2021)
Working Paper: The Financial Drivers of Populism in Europe (2021)
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