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Reprisals Remembered: German-Greek Conflict and Car Sales During the Euro Crisis

45 Pages Posted: 17 Oct 2013 Last revised: 26 Sep 2016

Vasiliki Fouka

Stanford University

Hans-Joachim Voth

University of Zurich - UBS International Center of Economics in Society; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2016

Abstract

Limited attention and selective memory are important forms of cognitive bias. We investigate how present events trigger selective recall, thereby changing economic behavior. The 2010-14 sovereign debt crisis in Greece created massive political conflict between the German and Greek governments. During the same period, German car sales declined sharply. Effects differed according to the actions of German troops during the occupation of Greece, 1941-44. Declines in German market share were much larger in areas where the Germans carried out massacres. Current events can reactivate past memories selectively, even in the same country, having a large effect on purchasing behavior.

Keywords: consumer boycott, memory, political conflict, car sales, Euro crisis, German–Greek relations

JEL Classification: D12, D74, F14, N14, N44

Suggested Citation

Fouka, Vasiliki and Voth, Hans-Joachim, Reprisals Remembered: German-Greek Conflict and Car Sales During the Euro Crisis (September 2016). Available at SSRN: https://ssrn.com/abstract=2340625 or http://dx.doi.org/10.2139/ssrn.2340625

Vasiliki Fouka (Contact Author)

Stanford University ( email )

Stanford, CA 94305
United States

Hans-Joachim Voth

University of Zurich - UBS International Center of Economics in Society ( email )

Raemistrasse 71
Zuerich, 8006
Switzerland

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

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