An Economic Analysis of the Swedish Euro Referendum of 2003
Number 296 – December 2007 The euro – what's in it for me? An Economic Analysis of the Swedish Euro Referendum of 2003 by Lars Jonung Directorate General for Economic and Financial Affairs and Jonas Vlachos University of Stockholm Economic Papers are written by the Staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The “Papers” are intended to increase awareness of the technical work being done by the staff and to seek comments and suggestions for further analyses. Views expressed represent exclusively the positions of the author and do not necessarily correspond to those of the European Commission. Comments and enquiries should be addressed to the: European Commission Directorate-General for Economic and Financial Affairs Publications BU-1 B - 1049 Brussels, Belgium ISSN 1016-8060 (print) ISSN 1725-3187 (online) ©European Communities, 2007 The euro – what's in it for me? An Economic Analysis of the Swedish Euro Referendum of 2003 By Lars Jonung and Jonas Vlachos∗ December, 2007 Abstract: The Swedish referendum on the euro in September 2003 is an exceptional event for researchers of monetary unions and of European economic integration. Voters chose between maintaining the domestic currency, the krona, and replacing it with the euro, the single currency of the European Union. The referendum revealed significant dividing lines between Yes- and No-voters in areas such as income, education, sex, employment, geographical location and industrial structure. The aim of this study is to explain the large differences in voting behaviour. The empirical analysis of the referendum outcome is based on the traditional optimum currency area (OCA) approach, merged with an account of the distributional effects of Swedish membership of the euro area as they were perceived by the voters.
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