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.     

Local economies and national economic evaluations

Underlying the phenomena of economic voting are voters’ perceptions of economic conditions. But from where do these evaluations originate? This work examines the effects of three types of factors influential to the formation of national economic evaluations: predispositions (such as age, gender, income, partisanship), information and attentiveness, and objective local economic conditions (local unemployment rates). Our findings fit with earlier work, broadly confirming the influential role each set of factors plays in shaping national economic perceptions. We then extend the literature - demonstrating that the impact of the local economic environment is conditional on attention to media, political information and education. Using a combined dataset of the 2006 Canadian Election Studies with neighbourhood level economic indicators drawn from Canadian Census data (2006), our findings show that, in developing perceptions of the national economy, more attentive, more informed and more educated individuals are less influenced by local economic conditions than their less attentive, less informed and less educated counterparts. These findings contribute to our understanding of how local economic conditions influence the formation of national economic evaluations.     

Tea Party support and perceptions of local economic conditions

Researchers have long studied the underpinnings of voter perceptions of national economic conditions. Of growing interest though, is the effect of local economic evaluations on approval and voting behavior. Even though individuals engage more directly with the local economy than with that of the nation, perceptions of local conditions are colored as much by individual attitudes and demographics as by objective measures. Metropolitan area unemployment rates strongly predict local evaluations, but so do education, age, sex, and political attitudes. Of particular interest, even controlling for objective conditions, support for the Tea Party strongly predicts more negative evaluations and overpowers most other sources of bias.     

Who Votes for the Future? Information,Expectations, and Endogeneity in Economic Voting

Voters’ four primary evaluations of the economy—retrospective national, retrospective pocketbook, prospective national, and prospective pocketbook—vary in the cognitive steps necessary to link economic outcomes to candidates in elections. We hypothesize that the effects of the different economic evaluations on vote choice vary with a voter’s ability to acquire information and anticipate the election outcome. Using data from the 1980 through 2004 US presidential elections, we estimate a model of vote choice that includes all four economic evaluations as well as information and uncertainty moderators. The effects of retrospective evaluations on vote choice do not vary by voter information. Prospective economic evaluations weigh in the decisions of the most informed voters, who rely on prospective national evaluations when they believe the incumbent party will win and on prospective pocketbook evaluations when they are uncertain about the election outcome or believe that the challenger will win. Voters who have accurate expectations about who will win the election show the strongest relationship between their vote choice and sociotropic evaluations of the economy, both retrospective and prospective. Voters whose economic evaluations are most likely to be endogenous to vote choice show a weaker relationship between economic evaluations and their votes than the voters who appear to be more objective in their assessments of the election. Economic voting is broader and more prospective than previously accepted, and concerns about endogeneity in economic evaluations are overstated.     

Extreme right-wing voting in Germany in a multilevel perspective: A rejoinder to Lubbers and Scheepers

Abstract.  In their article about individual and contextual characteristics of the German extreme right-wing vote in the 1990s, Lubbers and Scheepers ('Individual and contextual characteristics of the German extreme right-wing vote in the 1990s: A test of complementary theories', European Journal of Political Research 38 (2000): 63–94) found a contra- intuitive significant negative relationship between unemployment rate and an individual's likelihood of voting for the right-wing extremist Republikaner Party. The purpose of this article is to shed light on the reasons for this puzzling result. To capture contextual information resembling the individual's life sphere as close as possible, we use data that allow us to include the districts as an additional level between the individual and the state in our multilevel analyses.     

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.     

How Voters Evaluate Economic Competence: A Comparison between Parties In and Out of Power

Accounts of general election outcomes increasingly talk about voters comparing parties in terms of their perceived competence to manage the economy and public services. This raises the question of how voters form evaluations of party competence. While it is assumed that voters form evaluations of the incumbent based on the signals provided by its current performance in office it is less clear how, in the absence of such a performance record, voters might evaluate the potential competence of the opposition. Using data from the British Election Panel Studies this article models the process by which voters form evaluations of parties' competence to manage the economy and compares results across incumbent and opposition parties. On the basis of evidence from general elections of 1992–2001 the article demonstrates that the process of evaluation formation does differ between parties in and out of power with retrospective evaluations of recent economic performance influencing evaluations of the former but not the latter. Nevertheless, the article also demonstrates that voters are capable of forming evaluations of the opposition which are more than a simple mirror image of their evaluations of the incumbent. In the absence of an up-to-date performance record these evaluations are based on long-term partisan and ideological predispositions and the cues provided by party leaders.     

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.     

Economic voting: The effect of political context, volatility and turnout on voters' assignment of responsibility

Abstract.  This study analyses macroeconomic conditions and the electoral fortune of incumbents in 21 parliamentary Western countries between 1950 and 1997 in 266 national elections. Voters' assignment of responsibility for the state of the national economy is assumed to vary according to the context of the election. Building on previous research, the importance of the political context – clarity of responsibility and availability of alternatives – is analysed. The study also breaks new ground by introducing two new contexts of importance: volatility, seen from a systemic perspective, and the trend in turnout. The contextual hypothesis is confirmed. The universal economic effect as such is very weak indeed. However, given a favourable political and institutional environment (clear responsibility structure and availability of alternatives), an economic effect appears. Tests including the new contexts created on the basis of behavioural patterns in the electorate (system volatility and turnout trend) identify elections where the economic effects are even stronger.     

Economic performance and turnout at national and local elections

This paper analyzes the impact of economic performance on voter turnout. We estimate an economic turnout model in which local economic variables are included in quadratic form, so that non-linear effects can be taken into account. We use panel datasets covering municipalities, from 1979 to 2005, and cross-sections of parishes (freguesias) to analyze the determinants of turnout at Portuguese municipal and legislative elections. The empirical results indicate that the performance of the national economy is important only in legislative elections and that the regional and local unemployment rates tend to have non-linear relationships to turnout. The results obtained for Flemish municipalities also provide evidence in favor of a non-linear effect of unemployment on turnout.     

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.     

‘Left behind’ people,or places? The role of local economies in perceived community representation

Modern economics attributes importance to spatial inequality: yet in studying discontent with politics, existing research has mostly neglected local contexts and attitudes people hold about them. I use British Election Study data to investigate the factors leading people to believe their community is ignored by the political process. Firstly, real economic contexts play a role, since residents of low-income communities tend to take more negative views about how well their community is represented. Secondly, negative perceptions of the local economy are associated with more negative views of community representation, whereas equivalent ‘egotropic’ measures of people's personal economic situation have no such effect. Thirdly, I observe a ‘grievance’ effect wherein people are particularly negative about community representation when they believe that the national economy is more successful than that of one's local community.     

Issue Ownership of the Economy: Cross-Time Effects on Vote Choice

Issue ownership has become a useful concept for explaining party and voter behaviour in electoral democracies. This article argues that issue ownership can also provide us with a better understanding of the economic issue’s impact on the vote because perceptions of party competence at managing the economy can counterbalance the influence of retrospective economic evaluations, by encouraging voters to put economic performance (good or bad) into perspective. These general expectations are tested with the use of individual-level survey data from five Canadian Election Studies conducted between 1984 and 2011. That relatively long period of time allows estimation of the impact on incumbent vote choice of competence perceptions and economic assessments during both good and bad economic times. Consequently, the article shows that issue ownership of the economy matters to vote choice, that its influence has been consistent across elections, and that it outweighs the impact of retrospective economic judgements.     

Past is still present: Micro-level comparisons of conventional vs. transitional economic voting in three Polish elections

Using survey data from three Polish parliamentary elections, we provide the first systematic micro-level test contrasting a standard incumbency-based model of economic voting with a transitional economic voting model in the post-communist context. To do so, we introduce a novel temporal component to micro-level studies of economic voting that supplements standard short-term retrospective economic evaluations (e.g., “do you feel the economy has improved in the past 12 months?”) with longer “transitional” retrospective economic evaluations (e.g., “do you feel the economy has improved since the collapse of communism?”). Our analyses reveal a nuanced picture suggesting multiple paths for economic influences on voting in Poland. We find evidence consistent with the standard incumbency-based approach, but only for the specific set of evaluations to which the theory is most appropriately applied: short-term retrospective economic evaluations and the vote for incumbent parties. By contrast, the transitional model is strongly supported by evidence that evaluations of changes in economic conditions since the collapse of communism (“long-term economic evaluations”) have an effect on the vote for a range of parties. We demonstrate as well that these results are robust to model specification and generational effects.     

Political polarization in retrospective economic evaluations during recessions and recoveries

Retrospective economic evaluations are politically biased: across a broad range of democratic countries, supporters of the party that controls the executive provide evaluations that are systematically more positive than those of the rest of the electorate; similarly, ideological distance from the ruling party predicts more negative evaluations. Yet, during economic downturns, citizens of different ideological persuasions and partisan affiliations tend to agree that the state of the economy is dire. During recoveries, on the other hand, evaluations are polarized along partisan and ideological lines. Due to the psychological phenomenon of negativity bias, retrospective evaluations respond to economic downturns more strongly than to recoveries. As a consequence, the extent of polarization in public opinion varies dramatically between good and bad economic times.     

Ecologies of Unease: Geographic Context and National Economic Evaluations

Assessment of the nation??s economic performance has been repeatedly linked to voters?? decision-making in U.S. presidential elections. Here we inquire as to where those economic evaluations originate. One possibility in the politicized environment of a major campaign is that they are partisan determinations and do not reflect actual economic circumstances. Another possibility is that these judgments arise from close attention to news media, which is presumably highlighting national economic conditions as a facet of campaign coverage. Still a third explanation is that voters derive their national economic evaluations from living out their lives in particular localities which may or may not be experiencing the conditions that affect the nation as a whole. Drawing upon data from the 2008 presidential election, we find that varying local conditions do shape the economic evaluations of political independents. Moreover, unemployment is not the only salient factor, as fuel prices and foreclosures also figured prominently. Local economic factors, what we call geotropic considerations, shape national economic evaluations especially for those who aren??t making these judgments on simple partisan grounds.     

Tackling unemployment in China: state capacity and governance issues

Abstract

This paper considers China's state capacity and changing governance as revealed through its policies to tackle unemployment. Despite high levels of growth, economic restructuring has resulted in rising unemployment over the last decade. The Chinese state has been able to manage job losses from state enterprises, demonstrating some state capacity in relation to this sector and some persistent command economy governance mechanisms. However both design and implementation of policies to compensate and assist particular groups among the unemployed have been shaped by weak state capacity in several other areas. First, capacity to gather accurate employment data is limited, meaning local and central governments do not have a good understanding of the extent and nature of unemployment. Second, the sustainability of supposedly mandatory unemployment insurance schemes is threatened by poor capacity to enforce participation. Third, poor central state capacity to ensure local governments implement policies effectively leads to poor unemployment insurance fund capacity, resulting in provision for only a narrow segment of the unemployed and low quality employment services. Although the adoption of unemployment insurance (and its extension to employers and employees in the private sector), the introduction of a Labour Contract Law in 2007, and the delivery of employment services by private businesses indicate a shift towards the use of new governance mechanisms based on entitlement, contract and private sector delivery of public-sector goods, that shift is undermined by poor state capacity in relation to some of these new mechanisms.     

Economic voting and welfare programmes: Evidence from the American states

While scholars have hypothesised that a strong welfare state should reduce voters' incentives to base their votes on economic outcomes, evidence for this proposition remains mixed. This article tests whether differences in welfare protections across American states affect the relationship between economic performance and support for the president's party in 430 state legislative elections from 1970 to 1989. Analysing the results of over 42,000 contests in which an incumbent was running for re‐election, it finds that while unemployment insurance programmes do not affect the importance of economic performance, the electoral fortunes of presidential co‐partisans are less strongly tied to the national economy in states with generous anti‐poverty programmes. Thus by reducing vulnerability to poverty, economic safety‐nets lower the salience of the economy and provide electoral cover for politicians during economic slowdowns.     

Determinants of State Economic Perceptions

Despite a greatly increased emphasis on state economic development, citizens' perceptions of state economic conditions have been infrequently studied, leaving a serious question as to how well citizens distinguish between national and state economic performance. We investigate the sources of state economic perceptions using data from 1990 Voter Research and Surveys exit polls of 23 states along with measures of state economic conditions. We find strong support for the proposition that perceptions of state and national economies are distinct phenomena. We also find that state economic perceptions are well grounded in economic reality—that is, in the conditions of the state economy. Finally, we show that state economic perceptions are based on a variety of indicators, including measures that have not heretofore been included in models of economic voting.     

Global economic resilience: Analyzing the diverse impacts of the COVID-19 pandemic on the US,Pakistan, and the world

The economic development of a state can be accurately characterized as the measurable changes in macroeconomic indicators that result in an increase in the overall production or output over a specific timeframe, in comparison to the previous period. Several key macroeconomic factors contribute to the advancement of economic growth. These factors include the industrial production, unemployment rate, business Confidence Index, government budget deficit, and the labor force participation rate. The study employed secondary data from January 2016 to August 2023, with a monthly frequency, to estimate the coefficients. The data encompassed the United States, Pakistan, and the rest of the world. The empirical findings indicate that there exists a negative relationship between equality and economic growth in the United States, Pakistan, and other countries worldwide. The findings demonstrate that the global pandemic has had a notable impact on the industrial production of the World, the United States, and Pakistan, with an initial increase followed by a gradual decline. The unemployment rates in the United States, Pakistan, and the rest of the world have experienced a substantial decline. Simultaneously, the rate of unemployment has witnessed a notable increase, resulting in significant and adverse effects on the respective economies. The decrease in the Business Confidence Index can be attributed to heightened levels of uncertainty, which in turn have had a detrimental impact on the gross domestic product of the United States, Pakistan, and other countries worldwide. The reduction in imports has resulted in a decrease in the government budget deficit, which has had a notable impact on the economy.