Empirica – Journal of European Economics

Sponsored by the Austrian Economic Association and the Austrian Institute of Economic Research

Empirica publishes empirical and theoretical work on all economic aspects of European Integration. The topics may range from all challenges concerning the deepening of the European Union (Single Market, Lisbon Agenda, EMU) to enlargement and the external relations of the EU (globalisation).

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Friedrich Heinemann, Theocharis Grigoriadis
Origins of reform resistance and the Southern European regime
in: Special Issue: Challenges for Europe 2050 – Selected Papers of the EUROFRAME Conference 2015 and the WWWforEurope Project
Empirica, 2016, 43(4), S.661-691, http://www.springer.com/10663
With a particular interest for Southern Europe, this contribution develops a classification of obstacles to economic policy reforms. This classification covers approaches ranging from classical economics and political-economic explanations to more innovative explanations linked to behavioural economics. The subsequent part analyses qualitatively and quantitatively to which extent the "Southern European regime" may imply a particular relevance of some of the potential reform obstacles classified before. We derive "reform ability profiles" which quantify several of the reform obstacles (or reform drivers) to compare EU countries in their likely reform predisposition. These profiles confirm particular Southern European weaknesses which tend to reduce the political-economic feasibility of long-term reforms: a low effectiveness in poverty protection, high intertemporal discounting and uncertainty avoidance, a poor information level of the population and deeply shattered trust in national institutions. In a microeconometric analysis based on Eurobarometer survey data, the analysis leaves the highly aggregated level and looks into the individual heterogeneity in reform acceptance. It is shown that several of the reform obstacles identified in theory are also empirically correlated with the individual inclination to accept reforms.
Keywords:Behavioral economics Eurobarometer European debt crisis Reform resistance Trust
Forschungsbereich:Industrie-, Innovations- und internationale Ökonomie
Sprache:Englisch

Managing Editor

Univ.-Prof. MMag. Dr. Harald Oberhofer

Funktion: Ökonom (Senior Economist), Editor-in-Chief Empirica
Forschungsgruppe: Industrie-, Innovations- und internationale Ökonomie