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.

How does labour market dualism shape moral judgments about welfare deservingness? Combining the European Social Survey (N=33,560) with OECD measures of employment protection, we examine how individual labour-market position and country-level dualization condition welfare deservingness attitudes. We argue that labour-market institutions sort moral attribution differentially across positions rather than shifting moral dispositions uniformly. Three findings complicate the standard insider--outsider account. First, the currently unemployed are more punitive than otherwise comparable insiders, contradicting the prediction that exposure to labour-market risk produces structural attributions. Second, this "unemployed paradox" is institutionally invariant: it holds across the full range of European dualization, favouring a system-justification over a structural-attribution reading. Third, two narrower moral signatures do vary with dualization: the recently unemployed become more punitive in segmented systems, while fixed-term outsiders become marginally more pro-welfare. The ideological gradient is also inverted in most of Western Europe: left-leaning respondents hold more pro-welfare normative beliefs but more punitive attribution heuristics than right-leaning ones. These findings imply that redistributive coalitions appealing to shared outsider vulnerability face stronger moral resistance than the dualization literature anticipates, and point toward integrating social-psychological with institutional accounts of welfare attitudes.

Banking, Blame, and Democratic Accountability

“Blame Attribution and Blame Shifting to International Organizations.” With Tal Sadeh, Benjamin Daßler, and Yuval Hirshorn.

A growing literature documents how national governments can try to shift blame to International Organizations (IO). These studies focus almost entirely on top-down governments’ attempts to shift blame for policy failure and how it is reflected in the media, parliamentary debates or other government communication. In these accounts, citizens are passive – responding to politicians’ messages. We are missing the bottom-up analysis. Can citizens do their own blame shifting for policy failure from national governments to IOs? Methodologically, the reliance on observational data in existing studies makes it impossible to separate the bottom-up process from the top-down one, and to causally trace the shift in blame to policy failure. This paper begins to fill this gap. We argue that even without having populist/Eurosceptic attitudes (another focus of current literature), and even without blame avoidance action by political leaders and parties, members of the wider public can use information on who is responsible for a policy in order to attribute and shift blame for policy failure. As an unlikely case, we study the European Banking Union (EBU), in which member states delegated banking supervision to a supranational agency. We test our arguments using a conjoint survey experiment with 1,724 participants in Germany, which is a least-likely country. We find that a taxpayer-funded bank rescue costs governments 20 percent of the public’s support, but this is mitigated by 14 percent if the EU is involved in bank supervision. This effect is stronger for Eurosceptic citizens, but not restricted to them.

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.