Research

Cross-Border Finance and Identity-Based Selectivity

“How Does Cultural Identity Shape Global Financial Engagements?” ( Revise & Resubmit, Business and Politics )

IPE scholars often view financial liberalization as a uniform process, assuming that once a country opens its financial sector, it does so broadly and equally for all foreign partners, both in theory and practice. However, this perspective overlooks a crucial reality: financial openness is far more selective. What drives this selectivity? I argue that cultural identity factors—specifically cultural distance and internal diversity—play a key role in shaping financial relationships between countries. Using country-level panel data, I present empirical evidence showing that cultural distance acts as a barrier to deeper financial integration, while internal cultural diversity is linked to more open financial policies. This research challenges the notion that financial liberalization follows a ‘one-size-fits-all’ model, offering a new perspective on the selective nature of global financial engagement. The findings help explain why some international financial partnerships flourish while others falter, despite formal cooperation. Recognizing this selectivity encourages more realistic expectations about financial openness and promotes the development of cooperation frameworks that better reflect the complexities of global economic relationships.

“The Premium of Familiarity: Experimental Evidence on Financial Interactions Between Foreigners.” (Under Review)

What drives individuals to engage financially with certain foreign entities while avoiding others? This paper examines the role of cultural identity in financial decision-making on a global scale, with cues of cultural similarity or difference triggering cognitive biases toward in-group favoritism. Through a pre-registered behavioral experiment with a national U.S. sample, I investigate how cultural proximity and diversity affect individuals' willingness to engage financially with foreign entities across varying degrees of perceived ‘out-group’ status—and how these interactions influence preferences regarding foreign economic presence in the local market. Findings reveal that in-group favoritism strongly shapes financial behavior and attitudes, leading to biases that can undermine democratic values, social cohesion, and human capital. By uncovering the roots of cooperation—and barriers to it—this study sheds light on essential dynamics that affect both domestic society and international relations.

“The Political Psychology of Capital Protectionism”

▶ Abstract

Conventional wisdom holds that the public lacks the knowledge or interest to meaningfully engage with complex financial instruments like capital controls. This project explores whether, and how, citizens form preferences around restricting foreign financial access. Specifically, it investigates the psychological roots of identity-based heuristics that shape support for capital protectionism. Drawing on experimental evidence, I identify three core mechanisms—a desire for national autonomy, ingroup–outgroup bias, and reciprocity-based fairness concerns—that help explain how individuals make selective judgments about which foreign actors should be allowed or excluded from domestic financial markets. This study aims to show that even in the absence of technical knowledge, citizens evaluate global financial openness through symbolic and affective lenses, relying on intuitive cues about deservingness, threat, and group belonging.

Welfare Deservingness

“When Effort Is Not Enough: Political Identity and Welfare Deservingness in a Polarized Society.” With Clareta Treger. (Revise & Resubmit, Journal of European Public Policy )

This study explores whether political group conflict in a polarized environment biases perceptions of welfare deservingness, typically guided by political ideology, social distance, and the degree to which welfare recipients are motivated to seek employment. Using the Israeli 2023 judicial reform crisis as a case study, we conducted a pre-registered experiment, manipulating the motivation and implicit political affiliations of hypothetical welfare recipients. We find that while recipients who are motivated to find a job are generally seen as more deserving, political identity significantly distorts these evaluations. Political out-group recipients are viewed as less deserving than in-group members. Notably, the motivation premium is largest for recipients without political affiliation compared to both in- and out-group members. The study shows that in deeply polarized societies, political considerations shape perceptions of welfare deservingness and welfare policy preferences, highlighting the societal risks of escalating political divisions, including the denial of social rights of political opponents.

“Who Deserves a Safety Net? Labour-Market Dualization and Moral Heuristics.” With Gianluca Busilacchi.

Does labor-market vulnerability unite outsiders around a shared sense of welfare solidarity? Prominent insider--outsider accounts treat unemployed and precariously employed people as a common constituency, but this expectation overlooks a basic distinction: exclusion from employment and insecure attachment to employment may generate different moral orientations. Combining the European Social Survey (N=33,449) with OECD employment-protection indicators, we examine how labor-market positions are associated with punitive judgments of welfare claimants and whether the regulatory gap between permanent and temporary employment reshapes these judgments. Among the conventional outsider positions, currently unemployed respondents are substantially less punitive than otherwise comparable permanent-contract workers, consistent with solidarity rooted in direct exposure to unemployment. Fixed-term and no-contract workers, however, do not exhibit the same greater sympathy. Most notably, as the protection gap increases, fixed-term workers become more punitive relative to permanent-contract workers, and this pattern is not driven by any single country. The greater sympathy shown by currently unemployed respondents is similar in countries with narrower and wider protection gaps. Non-employed people with past unemployment become less punitive as the gap widens, although this pattern is not as consistent across countries. These findings challenge the assumption that shared vulnerability generates a common outsider outlook: direct unemployment is associated with greater sympathy, whereas insecure employment does not produce the same solidarity and may become more punitive where regulatory dualization is sharper.

Banking, Blame, and Democratic Accountability

“International Authority and Electoral Accountability.” With Tal Sadeh, Benjamin Daßler, and Yuval Hirshorn. (Under Review)

Does it matter to citizens whether responsibility for a policy rests with a national government or an international organization? Research on international authority reaches competing conclusions: citizens may respond to the location of authority, or they may care primarily about policy outcomes. We connect this debate to electoral accountability by testing whether information about the allocation of supervisory authority changes the penalty citizens impose on governing parties after a policy failure. We use a preregistered paired-profile conjoint experiment with 1,724 participants in Germany. The experiment independently randomizes the allocation of authority over bank supervision and whether a bank rescue is funded by taxpayers. Under national supervision, a taxpayer-funded rescue reduces stated support for governing-party profiles by 19.8 percentage points. When the EU is also involved in supervision, that penalty is 13.6 points smaller, although governing-party profiles still incur a net penalty. The difference is larger among Eurosceptic respondents but is not confined to them. These findings show that the institutional location of authority can moderate retrospective evaluations of national incumbents.

Banking and Ballots: Adverse Banking Conditions and Support for the Government.” With Yuval Hirshorn, Tal Sadeh and Benjamin Daßler.

▶ Abstract

Do people blame their government for adverse banking conditions, such as limited access to credit and unfavorable service terms? Will they also hold it accountable for such events outside periods of economic downturn? In the face of extensive research focusing on economic and banking crises as encompassing mechanisms of economic voting and protest, we argue that people’s daily experiences with banks provide them with tools and opportunities to recognize adverse banking outputs also in routine times, and to attribute responsibility for that to the government. We implement two studies to support this argument. Study one is a conjoint survey experiment conducted in Germany (a less likely country for blaming the government for bank failures). It is aimed at uncovering the causal effect that adverse banking conditions—both bad personal experiences and tax-funded bank bailouts—have on people’s preferences in choosing incumbents in elections. The design enables separating these effects from those of individual- and national-level economic distress. Study two is a large-scale comparative analysis of observational data from more than 100 democracies over 32 years. We proxy for low access to bank credit and poor bank service using data on bank losses, which also occur outside of crisis periods. We show how it significantly decreases electoral support for incumbents and increases participation in anti-government protests. We also provide evidence that bank losses are a suitable proxy—people are aware of them, they are not mere reflections of the business cycle, banking crisis, or other economic events, and they affect individuals more in countries in which the responsibility of the government is more easily detectable. Thus, our answer to both questions asked here is yes—people do blame their government for adverse, non-sensational banking conditions, and they do it especially outside periods of economic downturn. These conclusions, we believe, make an important contribution to both economic voting and banking politics literatures.