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.     

Government Constraints and Accountability: Economic Voting in Greece Before and During the IMF Intervention

Incumbent parties in Southern Europe experienced losses in their electoral support that came along with a series of economic reforms imposed by the EU and the IMF. However, recent theories of accountability would predict lower levels of economic voting given the limited room left for national governments to manoeuvre the economy. To resolve this puzzle, the paper presents and models quarterly vote intention time series data from Greece (2000–2012) and links it with the state of the economy. The empirical results show that after the bailout loan agreement Greek voters significantly shifted their assignment of responsibility for (economic) policy outcomes from the EU to the national government, which in turn heightened the impact of objective economic conditions on governing party support. The findings have implications for theories linking international structures, government constraints and democratic accountability.     

Patience as the rational foundation of sociotropic voting

Economic voting is one of the most important mechanisms on explaining voting behavior and on establishing the democratic accountability. However, people tend to use perceived national economic condition on evaluating the incumbent, which is known as sociotropic voting, instead of their pocketbook. Previous studies suggest both altruism and self-interested future expectation may help explain this seemingly irrational behavior, but empirical works have not yet found convincing evidence to prove or disprove the self-interested motivation. This article suggests that patience makes people discount less on the potential future influence of the current national economic change; if self-interest drives sociotropic voting, patient voters would be more sociotropic. Consistent with the hypothesis, individual-level data from 2014 Comparative Congressional Election Survey shows that patient voters rely more on the perceived national economic change to evaluate the incumbent and make vote choice. Limited evidence of the linkage between impatience and pocketbook voting among non-partisans, and on the country-level is also provided.     

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.     

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.     

The integration hypothesis: How the European Union shapes economic voting

Whereas economic perceptions influence the national vote in Western European countries, globalization, or international openness, conditions the influence of economic perceptions on that national vote. But how do attitudes toward the EU itself influence the economic vote? After establishing the presence of a national economic vote in Southern Europe (Spain, Italy, Greece and Portugal) we test the hypothesis that heightened perception of European Union economic responsibility reduces the magnitude of the national economic vote coefficient. These tests are carried out on current (2009) survey data, via logistic regression analysis of fully specified voting behavior models, estimated country-by-country and in a data pool. Clearly, the national economic vote diminishes, to the extent the EU is held responsible for the economy.     

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.     

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.     

Cognitive Heterogeneity and Economic Voting: A Comparative Analysis of Four Democratic Electorates

This article examines the cognitive foundations of economic voting in four diverse democratic electorates: Canada, Hungary, Mexico, and Taiwan. We present a theory of heterogeneous attribution, where an individual's level of political sophistication conditions his or her ability to attribute responsibility for economic conditions to governmental actors. In contrast to previous literature, we argue that higher, not lower, levels of political sophistication prompt citizens to "vote their pocketbook." Using data from surveys done in conjunction with recent elections in all of these countries, we find that more politically sophisticated respondents are more likely to make use of pocketbook evaluations in their decisions to support or oppose the incumbent government. These findings both present a significant challenge to the conventional wisdom on political sophistication and economic voting and shed light on the necessary cognitive preconditions for democratic accountability.     

Democratic Accountability and Retrospective Voting: A Laboratory Experiment

Understanding the incentives of politicians requires understanding the nature of voting behavior. I conduct a laboratory experiment to investigate whether voters focus on the problem of electoral selection or if they instead focus on electoral sanctioning. If voters are forward‐looking but uncertain about politicians’ unobservable characteristics, then it is rational to focus on selection. But doing so undermines democratic accountability because selection renders sanctioning an empty threat. In contrast to rational choice predictions, the experimental results indicate a strong behavioral tendency to use a retrospective voting rule. Additional experiments support the interpretation that retrospective voting is a simple heuristic that voters use to cope with a cognitively difficult inference and decision problem and, in addition, suggest that voters have a preference for accountability. The results pose a challenge for theories of electoral selection and voter learning and suggest new interpretations of empirical studies of economic and retrospective voting.     

Patrimonial Economic Voting: Legislative Elections in France

Patrimonial economic voting has been neglected in favour of classical economic voting studies. This assertion holds less, however, with French election investigations, where the neglect is relative rather than absolute. Whereas classical economic voting holds the economy to be a valence issue, patrimonial economic voting regards the economy as a positional issue. Voters who own more property, in particular high-risk assets, are held to be more right-wing in their political preferences. This patrimonial effect shows itself to be statistically and substantively strong in one of the few election data-sets with sufficient measures available – surveys on the National Assembly contests of 1978, 1988, 2002. The electoral effect exceeds that from the traditional ‘heavy variables’ of class and income. Moreover, further work might show its impact comparable to that of classic sociotropic retrospective evaluations of the national economy. Certainly a case can be made for further study of patrimonial economic voting, as compared to classical economic voting.     

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.     

Democracy in crisis? The declining support for national democracy in European countries, 2007–2011

The Great Recession that started in 2007/2008 has been the worst economic downturn since the crisis of the 1930s in Europe. It led to a major sovereign debt crisis, which is arguably the biggest challenge for the European Union (EU) and its common currency. Not since the 1950s have advanced democracies experienced such a dramatic external imposition of austerity and structural reform policies through inter‐ or supranational organisations such as the EU and the International Monetary Fund (IMF) or as implicitly requested by international financial markets. Did this massive interference with the room for maneuver of parliaments and governments in many countries erode support for national democracy in the crisis since 2007? Did citizens realise that their national democratic institutions were no longer able to effectively decide on major economic and social policies, on economic and welfare state institutions? And did they react by concluding that this constrained democracy no longer merited further support? These are the questions guiding this article, which compares 26 EU countries in 2007–2011 and re‐analyses 78 national surveys. Aggregate data from these surveys is analysed in a time‐series cross‐section design to examine changes in democratic support at the country level. The hypotheses also are tested at the individual level by estimating a series of cross‐classified multilevel logistic regression models. Support for national democracy – operationalised as satisfaction with the way democracy works and as trust in parliament – declined dramatically during the crisis. This was caused both by international organisations and markets interfering with national democratic procedures and by the deteriorating situation of the national economy as perceived by individual citizens.     

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.     

Hyperaccountability: Economic voting in Central and Eastern Europe

Are citizens in the new democracies of Central and Eastern Europe able to hold politicians accountable at elections? The inheritance of communism—disengaged citizens, economic flux, and inchoate party systems—might be expected to weaken accountability. Looking at the results of 34 elections in 10 Central and Eastern European countries, this paper finds instead a phenomenon that it calls hyperaccountability. Incumbents are held accountable for economic performance—particularly for unemployment—but this accountability distinguishes not between vote losses and gains, but between large and small losses. This result is significant in several respects. The evidence for economic voting restores some faith in the ability of voters to control their representatives in new democracies. The consistency of punishment in the region, however, may mitigate some of the benefits of economic voting. If incumbents know they will lose, then they may decide to enrich themselves when in power rather than produce good policies.     

The Market Turn in EU Governance—The Emergence of Public–Private Collaboration

The question asked here is how the horizontal relationship between public and private actors, with the overall aim of delivering public service, is squared with the requirement of democratic accountability according to the traditional model of command and control. Empirical analysis of the European satellite navigation program (Galileo), the European Investment Bank and health, and the European Financial market (the Lamfalussy model) shows that efficiency is at the forefront of the collaborations. Democratic accountability is assumed to take place because there is a formal chain of delegation. However, the private actors are not part of that chain and their accountability is never addressed. The market turn in European Union governance has opened up for private authority and emphasis of output legitimacy. It has not opened up for democratic reforms according to the very authority system of governance. We are dealing with a governance turn and yet it is still government.     

Electoral accountability,clarity of responsibility and labor market policy

Does the exercise of accountability in elections have palpable policy effects? Building on recent advances in the economic voting literature, we show that electoral accountability leaves an imprint on labor market policy when left-wing governments are in office. When responsibility for the economy is clear and elections offer an opportunity to claim credit for economic expansion, labor protections and benefits become more generous. However, when clarity of responsibility is low and incumbents can expect to veer electoral responsibility, left-wing governments are more likely to retrench labor market policy. These results hold for policies benefiting both labor market insiders and outsiders. Consistent with evidence that the labor market is the purview of the left, electoral accountability does not condition labor market policy under right-wing governments. We discuss the implications of these results in the context of growing party system fragmentation and weaker accountability across advanced industrial democracies.     

Economic and elections in Spain (1982–2008): Cross-measures,cross-time

In other leading Western democracies, the effects of economic voting are well-established. However, for Spain, a strong scholarly current argues against economic voting in that nation. Unfortunately, these various studies are limited, because they are based on incomplete survey cross-sections, which use individual subjective measures of the economy. We employ a full survey pool (of eight elections, 1982–2008), to examine the effects of two national economic measures (one objective and one subjective). In a carefully specified, and estimated, general voting model, the impact of economic conditions, variously measured, reveals itself to be statistically and substantively significant. After all, national economic voting in Spain appears to operate much as it does elsewhere.