<i>Moral </i>Hazard: German Public Opinion on the Greek Debt Crisis

Rathbun, Brian C.; Powers, Kathleen E.; Anders, Therese

doi:10.1111/pops.12522

Cited by 20 publications

(26 citation statements)

References 55 publications

(85 reference statements)

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“…Normative disagreements have been put forth to explain the lack of cooperation in several pressing real-life issues that require parties to invest in a shared public good, such as the climate crisis 44 , the European debt crisis 45 , or the refugee crisis 25 . We used a lab experiment to isolate the effect of normative disagreement from other complexities that arise in such real-life situations.…”

Section: Discussionmentioning

confidence: 99%

Heterogeneous groups cooperate in public good problems despite normative disagreements about individual contribution levels

Otten

Buskens

Przepiorka

et al. 2020

Sci Rep

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Norms can promote human cooperation to provide public goods. Yet, the potential of norms to promote cooperation may be limited to homogeneous groups in which all members benefit equally from the public good. Individual heterogeneity in the benefits of public good provision is commonly conjectured to bring about normative disagreements that harm cooperation. However, the role of these normative disagreements remains unclear because they are rarely directly measured or manipulated. In a laboratory experiment, we first measure participants’ views on the appropriate way to contribute to a public good with heterogeneous returns. We then use this information to sort people into groups that either agree or disagree on these views, thereby manipulating group-level disagreement on normative views. Participants subsequently make several incentivized contribution decisions in a public goods game with peer punishment. We find that although there are considerable disagreements about individual contribution levels in heterogeneous groups, these disagreements do not impede cooperation. While cooperation is maintained because low contributors are punished, participants do not use punishment to impose their normative views on others. The contribution levels at which groups cooperate strongly relate to the average normative views of these groups.

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Section: Discussionmentioning

confidence: 99%

Heterogeneous groups cooperate in public good problems despite normative disagreements about individual contribution levels

Otten

Buskens

Przepiorka

et al. 2020

Sci Rep

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“…The joint liability and repayment of these funds are expected to be unpopular, on average. The hotly contested debate about loans vs. grants was influenced by questions of moral hazard that surfaced during the Eurozone crisis (Rathbun et al, 2019;Warren, 2018). In a nutshell, people fear that net beneficiaries do not have enough incentives to responsibly manage the funds if they do not have to pay them back.…”

Section: Risk-sharingmentioning

confidence: 99%

In This Together? Support for European Fiscal Integration in the COVID-19 Crisis

Bremer¹,

Kuhn²,

Meijers³

et al. 2021

Preprint

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Fiscal integration has long been regarded as a necessary condition to ensure the long-term stability of the euro. In the aftermath of the euro crisis, concerns about a populist backlash of Eurosceptic voters constrained national governments in their ability to pursue such integration. However, during the COVID-19 pandemic, national leaders were able to agree to the Next Generation EU, a pandemic recovery fund of over 750 billion euro establishing an unprecedented, far-reaching, albeit temporary, fiscal stabilization capacity. Still, we know very little about citizens’ preferences towards the pandemic recovery fund? To answer this question, we conducted an original survey experiment on public support for different designs of a European pandemic recovery fund. We fielded the survey in five European countries (France, Germany, Italy, the Netherlands, and Spain) in July 2020, at the time that national leaders agreed on the recovery fund. Our results show that there is surprisingly high support for a joint European fiscal instrument and that citizens react to different elements of the pandemic recovery fund. They prefer a broad program that is directed at countries in need, but they are skeptical about common debt. Yet, citizens’ skepticism towards common debt is not important enough for them to negatively evaluate the program as a whole. Overall, the pandemic recovery fund agreed under ‘Next Generation EU’ is a well-tailored instrument to generate widespread political support across European member states.

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“…Eurozone membership required to adhere to the EU's approximation criteria for fiscal and monetary policy, and in the 1990s an external discipline was provided for Greece's economic policy. Greece has also been the most important beneficiary of the funds the EU has provided for economic and social cohesion within the framework of regional policies (Rathbun et al, 2019;Othelen et. Al, 2003).…”

Section: Greece Debt Crisismentioning

confidence: 99%

Significant Determiners of Greek Debt Crisis: A Comparative Analysis with Probit and MARS Approaches

Mızrak¹,

Yüksel

2019

IJFBS

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The purpose of this study is to determine major indicators of the Greek crisis that started in 2009 and the effects of which can still be observed. In this regard, 8 independent variables were applied so as to fulfill the objective. Besides, the annual data between the years 1984 and 2016 was analyzed with Probit model. As a consequence of this study, it was concluded that inflation and gross savings are the leading meters of Greek crisis based on probit method. On the other hand, according to the MARS results, 3 different variables are identified as the indicators of the debt crisis in Greece. It is concluded that there is a negative relation between financial crisis with saving ratio and current account balance. Additionally, it is also identified that high unemployment ratio leads to financial crisis. While comparisng the results of these two approaches, it is concluded that MARS is much more successful than the probit method to predict the debt crisis in Greece. It is strongly recommended that saving ratio should be increased in Greece. For this purpose, governments should take some actions in order to increase this ratio more than 15.5%. Within this framework, media channels can be used by the government to tell the people about the importance of the savings to have sustainable economic development.

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Moral Hazard: German Public Opinion on the Greek Debt Crisis

Cited by 20 publications

References 55 publications

Heterogeneous groups cooperate in public good problems despite normative disagreements about individual contribution levels

Heterogeneous groups cooperate in public good problems despite normative disagreements about individual contribution levels

In This Together? Support for European Fiscal Integration in the COVID-19 Crisis

Significant Determiners of Greek Debt Crisis: A Comparative Analysis with Probit and MARS Approaches

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