The causal effect of German reunification on economic freedom
Year: 2026
Type: dataset
Abstract: Do large changes in electorate composition affect institutional quality? In this paper, we causally consider a unique case of a large change in electorate composition that has no ethnic component: German reunification. As East and West Germans were ethnically similar, the main difference between both groups is tied to cultural differences that arose during Communist rule. We test whether reunification lowered economic freedom (our measure of institutional quality) in Germany using synthetic control methods. We find that there was a transitory effect of less than a decade whereby reunification significantly reduced economic freedom and institutional quality.
Source: ICPSR Data Holdings
DOI: 10.3886/e242812
Authors: Vincent Geloso, Kevin Grier, Florence Muhoza
Institutions: George Mason University, Texas Tech University
Language: English
Subfield: Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7120155441