The Impact of Economic Performance on Electoral Support in Sweden, 1967–1978*

This article investigates the impact of macroeconomic conditions on aggregate political support for governing parties in Sweden over the period 1967–1978. After reviewing survey evidence on the relative salience of economic and fiscal issues to the Swedish electorate, a novel, dynamic model of political support is presented. The model incorporates the ideas that voters evaluate economic performance relatively rather than absolutely, and that governments' mass political support is based on their cumulative performance records. The empirical results supply estimates of the impact of unemployment, inflation, the real income growth rate and the income effects of direct tax and transfer policies on political support. The evidence suggests that the responses of political support to reasonable movements in macroeconomic conditions are large enough to give economic management a pivotal role in electoral shifts.