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Can a Common Currency Foster a Shared Social Identity across Different Nations? The Case of the Euro

Franz Buscha (), Daniel Müller and Lionel Page ()

No 36, QuBE Working Papers from QUT Business School

Abstract: Fostering the emergence of a "European identity" was one of the declared goals of the euro adoption. Now, years after the physical introduction of the common currency, we assess whether there has been an effect on a shared European identity. We use two different datasets in order to assess the impact of the euro adoption on the fostering of a self-declared "European Identity". We find that the effect of the euro is statistically insignificant although it is precisely estimated. This result holds important implications for European policy makers. It also sheds new light on the formation of social identities.

Keywords: Social Identity; European Integration; Currency Union; Difference-in-Difference (search for similar items in EconPapers)
JEL-codes: D02 D03 D7 H8 Z10 Z18 (search for similar items in EconPapers)
Date: 2016-05-18
New Economics Papers: this item is included in nep-eec
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Journal Article: Can a common currency foster a shared social identity across different nations? The case of the euro (2017) Downloads
Working Paper: Can a common currency foster a shared social identity across different nations? The case of the Euro (2017) Downloads
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