Induced Civic Pride and Integration

33 Pages Posted: 1 May 2009

See all articles by Bernd Süssmuth

Bernd Süssmuth

University of Leipzig; CESifo (Center for Economic Studies and Ifo Institute)

Malte Heyne

Independent

Wolfgang Maennig

Universität Hamburg, Faculty of Business, Economics and Social Sciences

Multiple version iconThere are 3 versions of this paper

Date Written: March 2009

Abstract

This paper investigates whether a nation's contingent value of hosting a mega-event depends on past experience with implied public goods benefits for its residents. Applying data from an ex-ante and ex-post query based on contingent valuation methods, we use the FIFA World Cup 2006 as a natural experiment. The significant ex-post increase in valuation is shown to be due to adventitious citizens requiring an involving experience, rather than to an updating of a prior assessment. The World Cup finals were the first mega-event hosted by reunified Germany. We use this landmark event in German contemporary history to investigate how the integration of the two parts of Germany progressed after 18 years of reunification. We still find a profound difference in clear-sighted civic awareness of East and West German individuals. However, civic pride induced by collective experience can considerably accelerate the convergence of East Germans' preferences towards those of West Germans, which Alesina and Fuchs-Schundeln (2007) recently calculated to take 20 to 40 years or one and a half generation.

Keywords: experience goods, contingent valuation, civic awareness, German reunification

JEL Classification: H49, H59, L83

Suggested Citation

Süssmuth, Bernd and Heyne, Malte and Maennig, Wolfgang, Induced Civic Pride and Integration (March 2009). CESifo Working Paper Series No. 2582, Available at SSRN: https://ssrn.com/abstract=1365117

Bernd Süssmuth (Contact Author)

University of Leipzig ( email )

IEW Institute for Empirical Research in Economics
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Leipzig, D-04109
Germany
+49 341 97 33782 (Phone)
+49 341 97 33789 (Fax)

HOME PAGE: http://www.wifa.uni-leipzig.de/iew/professur-oekonometrie/team/prof-dr-bernd-suessmuth.html

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Malte Heyne

Independent ( email )

Wolfgang Maennig

Universität Hamburg, Faculty of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

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