Working Paper: NBER ID: w23325
Authors: Alberto Alesina; Guido Tabellini; Francesco Trebbi
Abstract: Employing a wide range of individual-level surveys, we study the extent of cultural and institutional heterogeneity within the EU and how this changed between 1980 and 2008. We present several novel empirical regularities that paint a complex picture. While Europe has experienced both systematic economic convergence and an increased coordination across national and subnational business cycles since 1980, this was not accompanied by cultural nor institutional convergence. Such persistent heterogeneity does not necessarily spell doom for further political integration, however. Compared to observed heterogeneity within member states themselves, or in well functioning federations such as the US, cultural diversity across EU members is a similar order of magnitude. The main stumbling block on the road to further political integration is not heterogeneity of tastes or of cultural traits, but other cleavages, such as national identities.
Keywords: Cultural Heterogeneity; Political Integration; European Union
JEL Codes: P48; Z1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Economic integration (F15) | Cultural convergence (Z10) |
| Cultural diversity among EU member states (F55) | Cultural diversity within member states (F55) |
| Preference heterogeneity and cultural diversity within EU countries (J79) | Political integration challenges (F55) |
| Cultural traits divergence (Z13) | Viability of political union (F55) |