Public Attitudes Toward Fiscal Consolidation: Evidence from a Representative German Population Survey

MAGKS Joint Discussion Paper No. 51-2013

36 Pages Posted: 7 Dec 2013 Last revised: 12 Dec 2014

See all articles by Bernd Hayo

Bernd Hayo

University of Marburg - School of Business & Economics

Florian Neumeier

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

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Date Written: September 1, 2014

Abstract

The poor state of public finances in many countries has led to calls for fiscal consolidation. In practice, implementing concrete consolidation measures appears to meet with public resistance, suggesting that the success of consolidation efforts strongly depends on the popularity of the chosen measures. To identify public attitudes toward fiscal consolidation and alternative consolidation measures, we conducted a survey among 2,000 German citizens. Applying ordered and multinominal logit models, we test theory-based hypotheses about the determinants of individual attitudes toward public debt. We find that, inter alia, personal economic situation, time preferences, fiscal illusion, and trust in politicians exert a significant impact on attitudes toward fiscal consolidation and preferences for alternative consolidation measures.

Keywords: Public debt, fiscal consolidation, sovereign debt crisis, public attitudes, Germany

JEL Classification: D72, H31, H63

Suggested Citation

Hayo, Bernd and Neumeier, Florian, Public Attitudes Toward Fiscal Consolidation: Evidence from a Representative German Population Survey (September 1, 2014). MAGKS Joint Discussion Paper No. 51-2013. Available at SSRN: https://ssrn.com/abstract=2364409 or http://dx.doi.org/10.2139/ssrn.2364409

Bernd Hayo

University of Marburg - School of Business & Economics ( email )

Universitaetsstr. 24
Marburg, D-35032
Germany
++49(0)6421-28-23091 (Phone)
++49(0)6421-28-23193 (Fax)

Florian Neumeier (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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