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Economics and Ideology: Causal Evidence of the Impact of Economic Conditions on Support for Redistribution and Other Ballot Proposals

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  • Eric J. Brunner
  • Stephen L. Ross
  • Ebonya L. Washington

Abstract

Using California ballot proposition returns and exogenous shifts to labor demand, we provide the first large-scale causal evidence of the impact of economic conditions on policy preferences. Consistent with economic theory, we find that positive economic shocks decrease support for redistributive policies. More notably, we find evidence of a need for cognitive consistency in voting behavior as economic shocks have a smaller significant impact on voting on non-economic ballot issues. While we also demonstrate that positive shocks decrease turnout, we present evidence that our results reflect changes to the electorate’s preferences and not simply to its composition.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14091.

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Date of creation: Jun 2008
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Publication status: published as “Economics and Policy Preferences: Causal Evidence of the Impact of Economic Conditions on Support for Redistribution and Other Proposals,” Review of Economics and Statistics (2011), 93(3): 888-906 (with Eric Brunner and Stephen L. Ross)
Handle: RePEc:nbr:nberwo:14091

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  1. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," NBER Working Papers 8267, National Bureau of Economic Research, Inc.
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  16. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
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  1. Paper of the Day
    by ryan in The bellows on 2009-02-13 14:39:29
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Cited by:
  1. Manuel Bagues & Berta Esteve-Volart, 2011. "Politicians' Luck of the Draw: Evidence from the Spanish Christmas Lottery," Working Papers 2011-01, FEDEA.
  2. Luttmer, Erzo F. P. & Singhal, Monica, 2008. "Culture, Context, and the Taste for Redistribution," Working Paper Series rwp08-038, Harvard University, John F. Kennedy School of Government.

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