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on European Economics |
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Issue of 2023‒06‒12
nineteen papers chosen by Giuseppe Marotta Università degli Studi di Modena e Reggio Emilia |
| By: | Francisco Serranito; Philipp RODERWEIS; Jamel Saadaoui |
| Abstract: | The European Central Bank’s (ECB) quantitative easing (QE) program was supposed to stimulate the real economy and be able to control inflation rates. Nevertheless, primarily the financial sector has benefited from the asset purchase program. Transmission was not taking place as desired, with commercial banks as money creators and thus liquidity distributors at the center of its inefficiency. Accordingly, this article aims to examine the transmission of central bank money to the euro area economy via the banking system and the corresponding bank lending channel (BLC). To bring clarity to the economic debate about the effectiveness of the BLC, bank lending and additional macroeconomic variables are divided into productive and unproductive. We analyze how these data react to an exogenous monetary policy shock in excess reserves, which is identified using different identification schemes before deploying least-square and penalized local projection (LP) methods. Following the estimation results, it can be concluded that a liquidity increase via quantitative easing cannot stimulate economic activity-enhancing lending in the euro area but, on the contrary, tends to disincentivize it. On the other hand, it drives lending to an unproductive sector. Additionally, this is confirmed by the fact that prices, especially in the housing sector, react significantly positively to a QE shock, whereas, on the contrary, producer prices in the industrial sector and inflation are not affected by unconventional monetary policy. |
| Keywords: | unconventional monetary policy, bank lending, local projection, identification, zero- and sign restrictions |
| JEL: | C32 E44 E51 E52 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2023-17&r=eec |
| By: | Bańbura, Marta; Belousova, Irina; Bodnár, Katalin; Tóth, Máté Barnabás |
| Abstract: | Euro area labour market variables are published with a considerable lag, longer than in the case of real GDP. We develop a suite of models to provide a more timely estimate (nowcast) of euro area quarterly employment growth based on a broad range of monthly indicators. The suite includes a batch of different dynamic factor model and bridge equation specifications. We evaluate it in real time over 2013-2022 and find that (i) monthly indicators provide useful information for a timely assessment of employment developments with unemployment rates and sentiment indicators containing most of the relevant information, (ii) the performance of small-scale models is comparable to those based on a larger information set, (iii) the suite performs favourably compared to the Eurosystem/ECB staff macroeconomic projections, (iv) forecasting performance deteriorates temporarily at the initial stage of the COVID-19 pandemic period, but the models outperform the benchmarks again thereafter. JEL Classification: C53, E24, E32, E37 |
| Keywords: | forecasting, mixed frequency, real-time data |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232815&r=eec |
| By: | Juan Equiza (University of Navarra); Ricardo Gimeno (Banco de España); Antonio Moreno (University of Navarra); Carlos Thomas (Banco de España) |
| Abstract: | The theoretical literature on term structure models emphasises the importance of the expected absorption of duration risk during the residual life of term bonds in order to understand the yield curve effect of central banks’ government bond purchases. Motivated by this, we develop a forward-looking, long-horizon measure of euro area government bond supply net of Eurosystem holdings, and use it to estimate the impact of the ECB’s asset purchase programmes in the context of a no-arbitrage affine term structure model. We find that an asset purchase shock equivalent to 10% of euro area GDP lowers the 10-year average yield of the euro area big four by 59 basis points (bp) and the associated term premium by 50 bp. Applying the model to the risk-free (OIS) yield curve, the same shock lowers the 10-year rate and term premium by 35 and 26 bp, respectively. |
| Keywords: | monetary policy, ECB, asset purchase programme, yield curve, term premium, risk-neutral rate |
| JEL: | E43 E44 E47 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2303&r=eec |
| By: | Sinem Kandemir (Justus-Liebig-University Giessen); Peter Tillmann (Justus-Liebig-University Giessen) |
| Abstract: | Most meetings of the Governing Council of the ECB take place intra muros at the ECB’s premises in Frankfurt. Some meetings, however, are held extra muros, i.e. outside Frankfurt, hosted by one of the national central banks. This paper uses high-frequency surprises from meeting days to show that the standard deviation of surprises is higher when the ECB meets intra muros. This difference is mostly due to larger timing, forward guidance and QE surprises when meeting in Frankfurt. We show that the transmission of policy surprises to longer-term interest rates is significantly weaker when meeting extra muros. In addition, when the meeting takes place extra muros, the wording of the ECB communication during the press conference is significantly more similar to the preceding meeting. The results suggest that the important decisions are taken in Frankfurt and that the ECB avoids large changes to the policy path when meeting extra muros. The difference across meeting types has consequences for the macroeconomic impact of monetary policy. |
| Keywords: | monetary policy, expectations, central bank communication, monetary policy committee, text analysis |
| JEL: | E58 E43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202312&r=eec |
| By: | Nicoli, Francesco; van der Duin, David; Burgoon, Brian |
| Abstract: | Prior to the 2022 Russian Invasion of Ukraine, the European Union was beginning to make initial steps in integrating the defense capabilities of its member states. The ambition was to incrementally achieve what French President Emmanuel Macron had labeled ‘strategic autonomy’. The Russian invasion of Ukraine exposed the lack of preparedness of western EU member states in front of a serious military threat. The war has so far emphasized the essential role still played by NATO as a guarantor of security in Europe, while undermining the credibility of incremental approaches to a Europeanization of defense achieved through the progressive expansion of pre-war initiatives. Yet, from production to capabilities to strategic thinking, the war has also identified the critical bottlenecks of European defense, and has created a new momentum for defense integration that qualitatively differs from previous initiatives in the field. However, the political feasibility of such programmes remain disputed, as any EU-wide approach to defense will entail both additional financial costs and a share of responsibilities and sovereignty on the matter. Furthermore, any such policy design is inherently multidimensional, differing over scope and level, governance, source of financing among other dimensions. To determine public support for European security cooperation, we conduct the first conjoint experiment ever fielded on public support for alternative defense union designs. We field a pre-registered, randomized conjoint experiment on a highly representative sample of the French, German, Italian, Dutch and Spanish population in November 2022. This multidimensional conjoint experiment allows us to determine the causal link between policy features of potential defense pacts, and public support or opposition to such policy. Our results show that policy packages meeting the most support require higher levels of ambition, joint EU-level governance, joint purchases of military equipment through joint procurement, and progressive taxation increases as the preferred form of financing. All in all, our results not only show that there is considerable cross-border support for defense integration in western Europe, but also that citizens in different western European countries have generally converging preferences regarding the actual design of such policy, indicating that a compromise policy is feasible and publicly supported. Furthermore, our results support ongoing research on the nature of European solidarity at times of crisis, suggesting that European citizens are willing to support the creation of joint institutions and policies to face issues of common concern, and therefore indicating that major crises open important windows of opportunity to re-shape EU-level policies and institutions. |
| Date: | 2023–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:knr6a&r=eec |
| By: | Christophe Blot; Paul Hubert; Jérôme Creel; Caroline Bozou |
| Abstract: | We investigate the financial market effects of central bank asset purchases by exploiting the unique setting provided by ECB’s PSPP and PEPP policies. While the PSPP aimed to counter deflationary risks, the PEPP was announced to alleviate sovereign risks, these programs consist in purchases of identical assets. We assess their impacts on various asset prices. We find that they have different effects on two variables: PSPP positively affects inflation swaps whereas PEPP negatively impacts sovereign spreads, but not the opposite. We document the channels for these differentiated effects and highlight the role of clarifying the rationale of a policy. |
| Keywords: | monetary policy, asset prices, central bank communication, central bank reaction function, intermediate objectives |
| JEL: | G12 E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2023-15&r=eec |
| By: | Cuzzola, Angelo; Barbieri, Claudio; Bindseil, Ulrich |
| Abstract: | The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test scenario. We construct a stress test model that accounts for a granular and multi-faceted representation of the liquidity of marketable and non-marketable assets. In particular, the model analyses banks’ strategic decisions to mobilise assets through four funding channels: unsecured loans, asset sales, private repurchase agreements, or Central Bank lending. We test three scenarios: the EBA regulatory stress test exercise, a shock to Russia and the Eastern European countries, and a shock to the Southern European countries. Results show that illiquidity can trigger insolvency and that liquidity adjustment can last significantly after the initial shock. We find evidence of a threshold in the benefits of expanding the collateral framework and highlight the heterogeneous effects across different jurisdictions and financial institutions. We find that bank equity losses are reduced in aggregate up to 17% at the tail of the loss distribution and on average by around 5% when financial institutions can rely on the collateral framework channel. JEL Classification: C63, E52, G01, G28 |
| Keywords: | Asset liquidity, Central Bank Collateral Framework, Collateral, Lender-Of-Last Resort, Stress test |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232814&r=eec |
| By: | Puriya Abbassi; Rajkamal Iyer; José-Luis Peydró; Paul E. Soto |
| Abstract: | We study short-term and medium-term changes in bank risk-taking as a result of supervision, and the associated real effects. For identification, we exploit the European Central Bank's asset-quality review (AQR) in conjunction with security and credit registers. After the AQR announcement, reviewed banks reduce riskier securities and credit supply, with the greatest effect on riskiest securities. We find negative spillovers on asset prices and firm-level credit availability. Moreover, non-banks with higher exposure to reviewed banks acquire the shed risk. After the AQR compliance, reviewed banks reload riskier securities but not riskier credit, resulting in negative medium-term firm-level real effects. These effects are especially strong for firms with high ex-ante credit risk. Among these non-safe firms, even those with high ex-ante productivity experience negative real effects. Our findings suggest that banks' liquid assets help them to mask risk from supervisors and risk adjustments banks make in response to supervision have persistent corporate real effects. |
| Keywords: | Corporate real effects from bank credit; Asset quality review; Stress tests; Supervision; Risk-masking; Costs of safe assets |
| JEL: | E58 G21 G28 H63 L51 |
| Date: | 2023–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2023-21&r=eec |
| By: | Dimitris Korobilis (University of Glasgow, UK; Rimini Centre for Economic Analysis); Maximilian Schröder (BI Norwegian Business School, Norway; Norges Bank, Norway) |
| Abstract: | We propose a multicountry quantile factor augmented vector autoregression (QFAVAR) to model heterogeneities both across countries and across characteristics of the distributions of macroeconomic time series. The presence of quantile factors allows for summarizing these two heterogeneities in a parsimonious way. We develop two algorithms for posterior inference that feature varying level of trade-off between estimation precision and computational speed. Using monthly data for the euro area, we establish the good empirical properties of the QFAVAR as a tool for assessing the effects of global shocks on country-level macroeconomic risks. In particular, QFAVAR short-run tail forecasts are more accurate compared to a FAVAR with symmetric Gaussian errors, as well as univariate quantile autoregressions that ignore comovements among quantiles of macroeconomic variables. We also illustrate how quantile impulse response functions and quantile connectedness measures, resulting from the new model, can be used to implement joint risk scenario analysis. |
| Keywords: | quantile VAR, MCMC, variational Bayes, dynamic factor model |
| JEL: | C11 C32 E31 E32 E37 E66 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:23-06&r=eec |
| By: | Acciari, Paolo; Alvaredo, Facundo; Morelli, Salvatore |
| Abstract: | Italy is one the countries with the highest wealth-to-income ratio in the developed world, but knowledge about the size distribution of wealth is currently limited. In this paper we estimate the distribution of personal wealth between 1995 and 2016, a period of economic turbulence and structural reforms. For this, we use a novel source on the full records of inheritance tax files, combined with surveys and national accounts. Unlike available statistics from household surveys alone, our estimates point to a sharp inversion of fortunes between the top and the bottom of the wealth distribution since the mid-1990s. Whereas the level of wealth concentration in Italy is in line with other European countries, its time trend appears more in line with the U.S., showing a large increase. Moreover, Italy stands out as one of the countries with the strongest decline in the wealth share of the bottom 50% of the population. A range of alternative series of wealth concentration, including estimates applying no adjustments and imputations, confirm our main findings. The paper also sheds new light on the determinants of wealth inequality trends. First, we show that although average wealth increases with age, dispersion within age groups remains very high; hence age plays a marginal role in explaining wealth concentration. Second, we show that house prices explain little of the change in wealth across the distribution since 1995. Changes in equity prices account for a large share of wealth growth above the 99th percentile. However, all in all, changes in the volume of assets and savings appear to be the predominant force behind the increase in wealth inequality, even at the top. The probability of top earners to climb to the top of the wealth distribution has doubled since the 2000s. Third, we document the growing role of life-time wealth transfers receipts, their increasing concentration at the top, and their increasingly favourable tax treatment for the wealthy. |
| Keywords: | wealth inequality; wealth distribution; top wealth shares; distributional national accounts; estate concentration; inheritance and gifts; inheritance tax |
| JEL: | D30 H24 N30 |
| Date: | 2023–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118732&r=eec |
| By: | María Alonso (Banco de España); Eduardo Gutiérrez (Banco de España); Enrique Moral-Benito (Banco de España); Diana Posada (Banco de España); Patrocinio Tello-Casas (Banco de España); Carlos Trucharte (Banco de España) |
| Abstract: | This paper presents a detailed analysis of the distribution of in-person access to banking services in Spain, compared with other European countries and other types of services. In accordance with the results of this diagnostic exercise, three main conclusions may be drawn. First, Spain has more bank branches and ATMs per thousand population than other European countries. This is largely due to differences in population distribution across countries. Indeed, once Spain’s high population dispersion is taken into account, effective coverage of in-person access to banking services in Spain is similar to the euro area average. Second, the population resident in sparsely populated rural inland municipalities (essentially in Castile-Leon, Aragon and Castile-La Mancha) has the lowest coverage in terms of in-person access to banking services, whether through bank branches, ATMs or other alternative arrangements. Third, in this group of municipalities, coverage of in-person access to banking services is relatively similar to that of access to other privately-provided services (such as bars or shops) but lower than that of access to certain quasi-public services (such as health care or pharmacists). |
| Keywords: | access, banking services, rural areas |
| JEL: | R51 I31 J11 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2215e&r=eec |
| By: | Viertola, Marika |
| Abstract: | This paper studies how Nordic multinational enterprises (MNEs) react to tax incentives generated by international corporate income tax rate differences and shift profit to low tax countries. A firm level panel data set containing ownership and accounting information is used to study profit shifting within the time period of 2012-2017. Applying a panel data adjusted Hines-Rice approach including firm and year fixed effects results in statistically significant tax semi-elasticity estimates between -0.7 to -1.3. The results are confirmed by several robustness checks as well as by applying the newest methods in two-way fixed effects literature. This suggests that MNEs with ultimate owners located in the Nordic countries seem to react to tax rate differences by shifting profit. Additionally, the MNEs within the euro area seem to engage more heavily in profit shifting. |
| Keywords: | multinational firms, profit shifting, international corporate taxation, tax avoidance, Business taxation and regulation, F23, H25, H26, fi=Verotus|sv=Beskattning|en=Taxation|, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:155&r=eec |
| By: | Manuel Schechtl; Rourke L. O'Brien |
| Abstract: | This article introduces fiscal impoverishment as a novel framework for comparative poverty research. We invert standard analyses of welfare state policy and household poverty by focusing not on poverty alleviation but poverty creation and exacerbation. Using harmonized household survey data, we show how the income and payroll taxes most rich countries rely on to finance the public sector serve to push households (further) into poverty. We estimate that across rich democracies on average about 1 in 4 households in poverty are made poorer on net after taxes and transfers; with fiscal impoverishment levels ranging from less than 10% in some countries to more than 70% in others, revealing extreme cross-national variation in how the pocketbooks of poor households are impacted by national tax and transfer policy. We show that fiscal impoverishment is relatively more common in continental and southern European welfare states and relatively less common in Anglo-liberal and Nordic countries but for different reasons. Counterfactual simulations show that reducing income tax liability would increase disposable income and substantially reduce household poverty in many welfare states. We consider the implications of fiscal impoverishment for assessing welfare state performance and for comparative poverty research. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:lis:liswps:831&r=eec |
| By: | Juan S. Mora-Sanguinetti (Banco de España); Javier Quintana (Banco de España); Isabel Soler (EUROPEAN UNIVERSITY INSTITUTE (EUI)); Rok Spruk (UNIVERSITY OF LJUBLJANA) |
| Abstract: | This paper studies for the first time the impact on various measures of economic efficiency of regulatory complexity by sector in Spain. We base our analysis on an innovative database that classifies 206, 777 regulations by economic sector and region, which highlights the growing volume of regulation, as well as its diversity by sector, region and business cycle stage. This analysis first looks at the aggregate impacts of sectoral regulatory complexity on the employment-to-population ratio, total working hours, sectoral GDP shares, labour intensity and capital intensity. Secondly it delves into the heterogeneous impacts observed across firms of different sizes and ages, drawing on the MCVL (Continuous Work History Sample), a rich database at the enterprise level. On the first front, we estimate a set of multiple fixed-effects model specifications across 13 economic sectors, 23 regulatory sectors and 17 Spanish regions over the period 1995-2020. Our results suggest that greater regulatory complexity has a negative impact on the employment rate and on value added. The effect on employment is consistent with previous findings for the United States. In particular, ceteris paribus, each additional increase in the regulatory complexity index is associated with a 0.7 percent drop in the sector-level employment share. Furthermore, our findings suggest that several distortionary sector-level effects of increasing regulatory complexity are taking place. For instance, markedly lower labour intensity and decreased sector-level investment rates, which confirm that greater regulatory complexity entails non-trivial sector-level costs. Distortionary effects of regulatory complexity materialise through compositional differences, mainly in the form of reduced wages and a lower investment rate. On the second front, using data on employment by firms’ characteristics, we show that the negative impact of regulatory complexity is concentrated on smaller and younger firms. This finding supports the hypothesis that greater regulatory complexity imposes a burden that small and less experienced firms are less able to handle. At the sector level, the manufacturing sectors are the most negatively affected. This may be related to the higher investment required by these sectors. |
| Keywords: | sectoral regulation, regulatory complexity, economic sectors, structural policies, employment |
| JEL: | K2 R11 J00 E02 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2312&r=eec |
| By: | Joana Andrade Vicente |
| Abstract: | In this paper we analyse the United States’ role as the current international tax leader, acting as an institutional leader uncapable of pushing forward towards a new, more suitable international corporate tax regime, due to the particularities of its international taxation system and economic preferences. After assessing United States multinationals’ activity in the Single Market, we find evidence of artificial profit shifting across Member States under the current method to allocate multinational enterprises’ profits. Such actions challenge a fair international taxation in the European Union, distorting European internal competition and hampering tax revenues collection. Although it may not be (yet) the time for a worldwide unitary taxation approach, the analysis performed highlights the urge for the European Union to overcome the United States political power and to unilaterally adopt the Formulary Apportionment approach, overhauling a century-old set of global tax rules based in the separate entity approach. |
| Keywords: | Country-by-Country Reporting; European Union; Formulary Apportionment; United States multinationals enterprises; tax havens. |
| JEL: | F23 H25 H26 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp02742023&r=eec |
| By: | Foreman-Peck, James (Cardiff Business School); Zhou, Peng (Cardiff Business School) |
| Abstract: | We model how R&D enters the innovation system in four ways (intramural, extramural, cooperative, and spillover). Despite measuring three different spillovers together, for a very large sample of European enterprises we conclude that the productivity effects of spillovers were at best smaller than intramural R&D productivity effects. We also find that building on the greater skills and experience of enterprises already undertaking R&D (intensity) raised labour productivity more than providing support for those beginning R&D (extensity). Optimal extramural R&D intensity was higher than the actual level; sample firms could boost productivity either by abandoning extramural R&D or by doing much more. There were substantial differences in our sample between enterprises and countries in terms of R&D spillovers. Greater multinational corporation incidence in new EU members accounted for these countries’ high direct R&D intensity productivity, regardless of their generally low overall labour productivity. Absorptive capacity made little difference to the utilisation of spillovers. |
| Keywords: | R&D; innovation; knowledge spillover |
| JEL: | L53 L21 H71 H25 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2023/16&r=eec |
| By: | Diaz, Antonia; Dolado, Juan J. (Universidad Carlos III de Madrid); Jáñez, Álvaro (Universidad Carlos III de Madrid); Wellschmied, Felix (Universidad Carlos III de Madrid) |
| Abstract: | This paper studies short-time work arrangements (ERTEs) when aggregate risk is partially sector-specific. In Spain, the Great Recession and the pandemic recession (aka the Great Contagion) can both be understood as being driven partially by large sector-specific shocks. However, the latter shows much less labor reallocation because ERTEs were available to firms. We show that ERTEs stabilize unemployment rates by allowing workers to remain with their employers in highly affected sectors. However, they crowd-out labor hoarding of employers, increase the volatility of the rate of people working and, consequently, of output, and slow-down worker reallocation away from the sectors badly hit by the recession. |
| Keywords: | worker turnover, sector diversification, short-time work, Great Recession, COVID-19 |
| JEL: | J11 J18 J21 J64 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16095&r=eec |
| By: | Mathias Mier |
| Abstract: | European energy crisis has three elements: skyrocketing prices for energy carriers such as natural gas, coal, as well as electricity, reduced nuclear power plant availability in France, and lower hydro power generation in Europe. This paper decomposes the effects of those elements on power markets and the EU ETS. Permanently higher natural gas prices reduce the canceling volume in the MSR by 425 million and prevent gas-CCS from being competitive in the long-run. Electricity prices are almost unaffected because gas-CCS is substituted by similarly competitive nuclear. Half of the 2022 European electricity price increase can be traced back to higher energy prices (from 36 to 143 e/MWh), whereas the other half (from 143 to 247 e/MWh) comes from French nuclear and European hydro problems. The decision to stretch the operation of three German nuclear power plants to counteract against those crises brings down European (German) electricity prices by 0.89% (2.47%) in 2023. Extending them for seven years after stretching, starting from September 2023, brings down electricity prices by 1.88% (4.8%) in 2024. |
| Keywords: | Electricity prices, natural gas prices, coal prices, nuclear power, hydro power, EU ETS, market stability reserve, power market modeling, intertemporal optimization |
| JEL: | C61 H21 H23 L94 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_394&r=eec |
| By: | Jérôme Gonnot; Federica lo Polito |
| Abstract: | This paper uses data on individual political opinions from the European Social Survey to study the role of horizontal cultural transmission on immigrants' political assimilation in Western Europe. We analyze five key political issues: redistribution, gay rights, EU integration, immigration policy and trust in political institutions. Controlling for individual socio-economic characteristics, we document that immigrants show identical support for redistribution as natives, display more conservative attitudes towards gay rights and more liberal views on the other three issues. These differences widen with the cultural and religious distance between immigrants' background and Western European norms, and decrease with the number of years since migration. Among immigrants that have spent at least 10 years in their host country, attitudes towards migration policy catch up with those of natives and the migrant-to-native gap on political trust is reduced by 80\%. In contrast, differences on EU integration and gay rights remain stable while immigrants' views on redistribution becomes relatively more conservative. These attitude-specific patterns are also salient when studying political preferences at the regional and sub-regional level. Our results strongly point towards the transmission of cultural values from natives to immigrants on matters of immigration policy and political trust, whereas attitudes towards redistribution seem immune to cultural influences at destination. |
| Keywords: | Immigration;Assimilation;Political Attitudes;Cultural Transmission |
| JEL: | D72 J15 P16 R23 Z1 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2023-12&r=eec |