An experimental investigation of voter myopia in economic evaluations

A prevalent assumption in the economic voting literature is that voters’ retrospective evaluations are based on very recent outcomes only, that is, they are myopic. I test this assumption by drawing on a population-based survey experiment from Turkey. Turkey presents a good opportunity to explore voters’ time horizons for economic voting: the long tenure of the same single-party government entailed periods of both good and poor performance, and its overall record to date has been better than its immediate predecessors. I find that voters can provide divergent assessments of incumbent’s performance in managing the economy over different time periods that are in line with the country’s macroeconomic trajectory. Moreover, voters’ evaluations of the incumbent’s performance during its entire tenure have a stronger effect on economic vote than their shorter-term evaluations, defying voter myopia. I provide evidence that long-term outcomes might weigh heavier in voters’ considerations than commonly assumed.     

Compared to what? Media-guided reference points and relative economic voting

The idea of the relative economy, or benchmarking economic voting, has been around for a long time. However, the choice of international benchmark(s) remains underspecified, especially in cross-national and time-series studies. This paper argues that the selection process of benchmark(s) should be guided by the theory suggesting that voters benchmark countries that are similar, familiar, and connected, and that media guide voters to appreciate these reference points. Using domestic media coverage from Lexis-Nexis spanning 22 languages, 29 democracies, and over 30 years, this research identifies the unique reference points across time and space. Analysis of this novel dataset shows that voters react strongly to relative economic performance when they make vote choices. Moreover, the benchmarking effects become more pronounced with highly educated populations, but are not affected by clarity of responsibility.     

The global economic crisis and domestic political agendas

There is an ongoing debate within the economic voting literature about whether the economy's salience systematically fluctuates over time or is constant. The recent global economic slowdown provides leverage to test the proposition that voters give greater weight to economic performance when it is weak. Data on voters' issue priorities from 2000 to 2011 shows that voters were more likely to consider the economy an important issue during periods of bad or volatile economic performance. A weak economy also focuses voter attention on corruption and crime while reducing attention to social policy and foreign affairs. Crime rates, terrorist attacks, globalization, and the level of development also affect the economy's place on the electoral agenda. Thus one impact of the recent financial downturn was a shift toward economic voting in countries where it was deepest.     

Economic voting in Sweden 1985–2010

Despite the fact that Sweden has the world’s second longest time-series of national election Studies, the standard model of micro-level economic voting has only been occasionally applied in Sweden. This study presents a long-term perspective on economic voting in Sweden and analyzes to what extent economic perceptions influence governmental support in general elections in Sweden at the eight latest parliamentary elections, 1985--2010. To this end, this article makes use of the rolling two-wave panels of the Swedish national election studies and estimates the probability of voting for the government depending on economic perceptions, previous vote, ideology and a set of SES controls. The results show that Swedish voting behaviour is no exception to that of most western democracies; subjective economic evaluations of the Swedish economy systematically influence government support. If voters feel the economy is improving they are more likely to vote for the incumbent government than when they feel the economy is getting worse.     

Endogenous economic voting: evidence from the 1997 British election

Using panel surveys conducted in Great Britain before and after the 1997 general election, we examine the relationship between voting behavior and post-election economic perceptions. Drawing on psychological theories of attitude formation, we argue that those who voted for Labour and the Liberal Democrats perceived the past state of the British economy under the Tory government more negatively than they had prior to casting their ballot in the 1997 election. Similarly, we posit that Labour supporters would view the future state of the national economy under Labour more positively than they had before the election. This indicates that, contrary to many assumptions in the economic voting literature, voting behavior influences evaluations of the economy as voters seek to reduce inconsistencies between their vote choice and evaluations of the economy by bringing their attitudes in line with the vote they cast in the election. It also means that voters’ post-election economic perceptions are, at least in part, influenced by and thus endogenous to their vote choice. This finding has two major implications: first, cross-sectional models of economic voting are likely to overestimate the effect of economic perceptions on the vote. Second, the endogeneity of economic perceptions may compromise the quality of economic voting as a mechanism for democratic accountability.     

Scope conditions of economic voting: The Danish exception?

In country after country, economic voting analysts have found that voters react sociotropically rather than egotropically. However, in a series of papers Nannestad and Paldam have found the exact opposite result for Danish voters – a result which challenges the scope conditions of economic voting. Changing only a few minor aspects of Nannestad and Paldam’s design, including the introduction of a standard sociotropic item in their models, though, reproduces the standard result: strong sociotropic and weak egotropic effects. The challenging results thus seem to be methodological artefacts; a finding that strengthens confidence in the generalizability of the basic mechanism of economic voting. Voters are not necessarily altruists, however. Sociotropic voting may be driven by both egoistic and altruistic considerations.     

Ideology,party systems and corruption voting in European democracies

What is the impact of corruption on citizens' voting behavior? There is a growing literature on an increasingly ubiquitous puzzle in many democratic countries: that corrupt officials continue to be re-elected by voters. In this study we address this issue with a novel theory and newly collected original survey data for 24 European countries. The crux of the argument is that voters' ideology is a salient factor in explaining why citizens would continue voting for their preferred party despite the fact that it has been involved in a corruption scandal. Developing a theory of supply (number of effective parties) and demand (voters must have acceptable ideological alternatives to their preferred party), we posit that there is a U-shaped relationship between the likelihood of corruption voting and where voters place themselves on the left/right spectrum. The further to the fringes, the more likely the voters are to neglect corruption charges and continue to support their party. However, as the number of viable party alternatives increases, the effect of ideology is expected to play a smaller role. In systems with a large number of effective parties, the curve is expected to be flat, as the likelihood that the fringe voters also have a clean and reasonably ideologically close alternative to switch to. The hypothesis implies a cross level interaction for which we find strong and robust empirical evidence using hierarchical modeling. In addition, we provide empirical insights about how individual level ideology and country level party systems – among other factors – impact a voter's decision to switch parties or stay home in the face of their party being involved in a corruption scandal.     

The Incumbent Electoral Defeat in the 2011 Spanish National Elections: The Effect of the Economic Crisis in an Ideological Polarized Party System

Abstract

This article examines the effect of the economic crisis on voting preferences in the 2011 Spanish national election. Specifically we demonstrate that Spanish voters' reactions to the economic crisis were not uniform and that their evaluations of the economic situation and final electoral decisions were conditioned by prior ideological preferences. Our findings have several important consequences for the economic voting model. First, in a more polarized party system how voters evaluate the economic performance of the incumbent is a better predictor of vote choice than evaluations of the economy as a whole. Second, this effect varies depending on where parties are located and competing ideologically. Finally, those effects are more conditional on voters' ideological predispositions than the effects of voters' evaluations of the situation of the economy.     

Voters’ commitment problem and reforms in welfare programs

When will a vote-seeking government pursue unpopular welfare reforms that are likely to cost it votes? Using a game-theoretical model, we show that a government enacts reforms that are unpopular with the median voter during bad economic times, but not during good ones. The key reason is that voters cannot commit to re-elect a government that does not reform during bad times. This voters’ commitment problem stems from economic voting, i.e., voters’ tendency to punish the government for a poorly performing economy. The voter commitment problem provides an explanation for the empirical puzzle that governments sometimes enact reforms that voters oppose.     

Perceptions and reality: Economic voting at the 2004 European Parliament elections

Abstract.  One of the most influential explanations of voting behaviour is based on economic factors: when the economy is doing well, voters reward the incumbent government and when the economy is doing badly, voters punish the incumbent. This reward-punishment model is thought to be particularly appropriate at second order contests such as European Parliament elections. Yet operationalising this economic voting model using citizens' perceptions of economic performance may suffer from endogeneity problems if citizens' perceptions are in fact a function of their party preferences rather than being a cause of their party preferences. Thus, this article models a 'strict' version of economic voting in which they purge citizens' economic perceptions of partisan effects and only use as a predictor of voting that portion of citizens' economic perceptions that is caused by the real world economy. Using data on voting at the 2004 European Parliament elections for 23 European Union electorates, the article finds some, but limited, evidence for economic voting that is dependent on both voter sophistication and clarity of responsibility for the economy within any country. First, only politically sophisticated voters' subjective economic assessments are in fact grounded in economic reality. Second, the portion of subjective economic assessments that is a function of the real world economy is a significant predictor of voting only in single party government contexts where there can be a clear attribution of responsibility. For coalition government contexts, the article finds essentially no impact of the real economy via economic perceptions on vote choice, at least at European Parliament elections.     

Re‐electing the Culprits of the Crisis? Elections in the Aftermath of a Recession

Theories of economic voting and electoral accountability suggest that voters punish incumbent governments for poor economic conditions. Incumbents are thus expected to suffer substantially during significant economic crisis but their successor in office will face the difficult task of reviving the economy. The economic crisis may, therefore, negatively affect government parties in subsequent elections even though the economic conditions may, to a large degree, have been inherited from the previous government. It is argued in this article that economic conditions play an important role in such circumstances as they place specific issues on the agenda, which structure the strategies available to the parties. Therefore, the article studies the 2013 Icelandic parliamentary election in which the incumbent government parties suffered a big loss despite having steered the country through an economic recovery. While perceptions of competence and past performance influenced party support, three specific issues thrust on the agenda by the economic crisis – mortgage relief, Icesave and European Union accession/negotiations – help explain why the centre‐right parties were successful in returning to the cabinet.     

Economic vulnerability and economic voting in 14 OECD countries

The economic voting literature shows that good economic performance bolsters the electoral prospects of incumbents. However, disagreement persists as to whether voters in vulnerable economic conditions are more likely to engage in economic voting. It is argued in this article that a crucial factor in explaining individual‐level variation in economic voting is the degree of exposure to economic risks, because risk exposure affects the saliency of the economy in voting decisions. In particular, the focus is on job insecurity and employability as key determinants of economic voting patterns. The article hypothesises that the extent of economic voting is greater in voters who are more vulnerable to unemployment and less employable in case of job loss. Support for these hypotheses is found in a test with a dataset that combines survey data on incumbent support with occupational unemployment rates and other measures of exposure to economic risks.     

Finding Out the Hard Way: Uncovering the Structural Foundations of Political Dissatisfaction in Italy, 1973–2013

In economic voting models, the electorate punishes governments associated with bad economic results and rewards those who provide prosperity. However, citizens do not always place the same weight on economic considerations when deciding their vote. This weight, it is argued, is a function of the degree to which governments can be deemed responsible for domestic economic outcomes. More precisely, the article hypothesises that when the economy is highly vulnerable to external economic conditions (and thus less controllable by the national government), voters will value less the information they receive on the state of the economy, and, as a consequence, electoral behaviour will be less influenced by economic performance. This conjecture is tested empirically using survey data from 15 European countries. Consistently with the prediction, it is found that employment expectations matter more the greater the degree of economic closeness of the country. General economic expectations have an impact on voting regardless of the level of economic openness, and no sign of pocketbook voting is detected. Also, the evidence seems to suggest that the internationalisation of the economy plays an exonerating role only under left-wing governments.     

How (often) do voters change their consideration sets?

The consideration set model posits that in multi-party elections voters decide in two stages. We expect that in the consideration stage, when voters select viable options, ideological proximity is a key determinant, while in the choice stage election-specific factors become particularly important. This would imply that consideration sets are rather stable and that changes in voting preferences occur mainly within ideologically coherent consideration sets. This study examines both claims by analyzing panel survey data from Sweden and the Netherlands. Consideration sets were indeed rather stable, more so than voting intentions. After one year, voters still considered the same party in 81% of cases and only 13% of respondents shifted between ideological camps. This indicates that voters changed electoral preferences primarily within the boundaries of relatively stable consideration sets and ideological camps. These findings help to understand how elections can be volatile, despite the strong impact of highly stable ideological orientations.     

International Constraints and Electoral Decisions: Does the Room to Maneuver Attenuate Economic Voting?

Prominent studies of electoral accountability and economic voting suggest that government constraints and international financial structures decrease the economic vote. The proposed mechanism is often labeled as the “room to maneuver,” and it posits that because elected officials have limited space to propose and implement economic policy, politicians can shirk responsibility, and thus voters are less likely to place voting weights on the economy. However, results from elections that took place in Europe during the Great Recession and scholarly research on economic voting in these elections cast serious doubts on the causal mechanism. This article directly tests this mechanism with a survey experiment using data from Greece (the country most affected by the debt crisis). The results suggest that although the economic vote is strong and substantive, its size does not vary across the room to maneuver treatments. This finding informs the literature on economic voting and carries out important implications for party strategies with respect to exogenous policy impositions and their electoral effects.     

Is a corrupt government totally unacceptable?

Corrupt governments are not always punished by voters. Under certain circumstances citizens consider voting for the incumbent party even if the party is perceived as corrupt. Using survey data for Spain, this article analyses what makes citizens reject (or not) the idea of voting for a corrupt party. Previous research has shown that party identification, ideology and political information play a role in voters’ reactions to corruption. The article argues that voters judge corruption in relative terms; what matters is not how corrupt the incumbent party is perceived to be but whether it is deemed to be more corrupt than the other parties.     

Retrospective pledge voting: A comparative study of the electoral consequences of government parties’ pledge fulfilment

Does pledge fulfilment bear any electoral consequences for government parties? While previous research on retrospective voting has largely focused on electoral accountability with respect to the economy, the theoretical framework presented in this study links government parties’ performance to their previous electoral pledges. It is argued that government parties are more likely to be rewarded by voters when they have fulfilled more pledges during the legislative term. Good pledge performance of a party is associated with the ability to maximise policy benefits (accomplishment) and to be a responsible actor that will stick to its promises in the future as well (competence). Analysing data from 69 elections in 14 countries shows that a government party's electoral outcome is affected by its previous pledge performance. A government party that fulfils a higher share of election pledges is more likely to prevent electoral losses. This finding indicates that voters react at the polls to party pledge fulfilment, which highlights the crucial role of promissory representation in democratic regimes. Surprisingly and in contrast with economic voting, there is no evidence that retrospective pledge voting is moderated by clarity of responsibility.     

Performance pressure: Patterns of partisanship and the economic vote

Numerous studies have demonstrated a weakening identification of voters with political parties in Western Europe over the last three decades. It is argued here that the growing proportion of voters with weak or no party affinities has strong implications for economic voting. When the proportion of voters with partisan affinities is low, the effect of economic performance on election outcomes is strong; when partisans proliferate, economic conditions matter less. Employing Eurobarometer data for eight European countries from 1976 to 1992, this inverse association between partisanship and the economic vote is demonstrated. This finding implies a growing effect for the objective economy on the vote in Europe. It helps explain an important puzzle in the economic voting literature: Weak results in aggregate level cross‐national studies of economic voting may be attributable to characteristics of the electorate, not just to the characteristics of government.     

Economic voting in Hungary, 1998–2008

This study investigates retrospective voting and issue voting, and their change over time in a transitioning country. Sociotropic, as well as egocentric economic evaluations, and policy issues of parties are expected to play an increasing role in party preferences of citizens over time. Data consist of 41 Hungarian cross-sectional surveys, between 1998 and 2008. Results of conditional logistic regression models reveal that voters reward incumbent parties when they see improvements in their personal or the national economic situation, and punish them if the economy deteriorates. Distance from a given party on the left–right scale also decreases the chance of voting for that party. Voting behavior is changing during transition. The evaluations of the national economy and personal situation have an increasing impact on party preferences over time. We found educational heterogeneity in the extent of economic voting.     

Accountable or Untouchable? Electoral accountability in Romanian local elections

While retrospective models of voting posit that voters should “vote the rascals out”, a wave of recent research has found that this is rarely the case. We investigate this question in a context in which many sitting politicians have recently been indicted on corruption charges – the municipal level in Romania, a surprisingly under-researched case in this sub-field. Romania provides a good case for electoral accountability. Not only do Romanians deeply detest corruption, the party system also contains many parties that would make it easy for voters to switch from a corrupt to a cleaner alternative. We collected an original data register of electoral and socio-political data on roughly 3200 localities together with all cases of corruption charges published by the Romanian anti-corruption agency, the Direcţia Naţională Anticorupţie (DNA), accounting for magnitude and timing of the scandal as well as the judicial outcome for the indicted mayor. In all, we find that 81 sitting mayors elected in 2012 were charged with corruption prior to the 2016 election. We test the electoral impact of corruption on the incumbent mayors on four outcomes indicating electoral accountability commonly used in the literature – retirement, vote share compared to the previous election, voter turnout, and reelection using difference and difference and a pairwise matching designs, inter alia. The results show that Romanians do punish their corrupt incumbent mayors to a quite high extent compared to the clean mayors. However, due to the large vote margins, the punishment is not severe enough to make them lose more often than similar “clean‟ mayors, although they tend to not run for re-election at much higher rates. Turnout is unaffected by corruption at the municipal level. In line with previous results, we thus find a certain amount of electoral accountability, but not to the extent that the ‘rascals are thrown out’.