Good-Bye Lenin (or Not?): The Effect of Communism on People's Preferences

Authors: Alesina, Alberto; Fuchs-Schündeln, Nicola

Source: The American Economic Review, Volume 97, Number 4, September 2007 , pp. 1507-1528(22)

Publisher: American Economic Association

Buy & download fulltext article:

Price: $19.00 plus tax (Refund Policy)

Abstract:

Preferences for redistribution, as well as the generosity of welfare states, differ significantly across countries. This paper tests whether there exists a feedback process of the economic regime on individual preferences. We exploit the experiment of German separation and reunification to establish exogeneity of the economic system. We find that, after German reunification, East Germans are more in favor of state intervention than West Germans. This effect is especially strong for older cohorts. We further find that East Germans' preferences converge toward those of West Germans. It will take one to two generations for preferences to converge completely.

Document Type: Short communication

DOI: http://dx.doi.org/10.1257/000282807783286766

Publication date: 2007-09-01

More about this publication?

The American Economic Review is a general-interest economics journal. The journal is published quarterly and contains articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in the economics profession.
Editorial Board
Information for Authors
Subscribe to this Title
Membership Information
Terms & Conditions
e-Publications for AEA Members
AEAweb
ingentaconnect is not responsible for the content or availability of external websites