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Economic Interests and Public Support for the Euro

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Abstract:

Although economic theories have been advanced to explain public support for the common currency, we know very little about how public support for the euro has been affected by its economic impact, for example, on prices. We hypothesize that concern about rising prices following the introduction of the euro may have dampened enthusiasm for the project. We use Eurobaromater data spanning the first five years of circulation to examine how rising prices have shaped support for the euro. We find that while inflation has had a negative impact on support for the euro it is offset by more diffuse support for the European Union. This support, along with the impact of a strong currency, has led most (2/3’s) Europeans to be generally positive about the euro.

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euro (120), support (113), european (63), econom (51), eu (47), currenc (47), percent (39), price (38), eurozon (33), nation (32), rate (31), citizen (28), inflat (26), public (26), member (25), increas (22), general (21), respond (21), level (21), countri (21), introduct (21),

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euro, public opinion, eurobarometer
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Name: MPSA Annual National Conference
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MLA Citation:

Banducci, Susan., Karp, Jeffrey. and Loedel, Peter. "Economic Interests and Public Support for the Euro" Paper presented at the annual meeting of the MPSA Annual National Conference, Palmer House Hotel, Hilton, Chicago, IL, Apr 03, 2008 <Not Available>. 2013-12-14 <http://citation.allacademic.com/meta/p267081_index.html>

APA Citation:

Banducci, S. A., Karp, J. A. and Loedel, P. , 2008-04-03 "Economic Interests and Public Support for the Euro" Paper presented at the annual meeting of the MPSA Annual National Conference, Palmer House Hotel, Hilton, Chicago, IL Online <APPLICATION/PDF>. 2013-12-14 from http://citation.allacademic.com/meta/p267081_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Although economic theories have been advanced to explain public support for the common currency, we know very little about how public support for the euro has been affected by its economic impact, for example, on prices. We hypothesize that concern about rising prices following the introduction of the euro may have dampened enthusiasm for the project. We use Eurobaromater data spanning the first five years of circulation to examine how rising prices have shaped support for the euro. We find that while inflation has had a negative impact on support for the euro it is offset by more diffuse support for the European Union. This support, along with the impact of a strong currency, has led most (2/3’s) Europeans to be generally positive about the euro.

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Document Type: application/pdf
Page count: 24
Word count: 6199
Text sample:
Economic Interests and Public Support for the Euro Susan A. Banducci University of Exeter s.a.banducci@ex.ac.uk Jeffrey A. Karp University of Exeter j.karp@exeter.ac.uk Peter H. Loedel West Chester University ploedel@wcupa.edu March 28 2008 Abstract: Although economic theories have been advanced to explain public support for the common currency we know very little about how public support for the euro has been affected by its economic impact for example on prices. We hypothesize that concern about rising prices following the introduction
(0.05) 0.05 New entrant 1.32 ** (0.14) 0.16 0.77 ** (0.25) 0.19 Constant ‐0.22 (0.20) 0.51 (0.25) Number of countries 13 14 n 13 140 13 273 Pseudo R 2 0.21 0.15 **p<.01; *p<.05 Source: Eurobarometer 67.2 (Spring 2007) Note: Robust standard errors are clustered by country; Min‐Max refers to the maximum change in probabability (ie. first difference).


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