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Pocketbook Voting and Social Preferences in Referenda

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  • Johannes Meya
  • Panu Poutvaara
  • Robert Schwager

Abstract

We study the role of self-interest and social preferences in referenda. Our analysis is based on collective purchasing decisions of university students on deep-discount flat rate tickets for public transportation and culture. Individual usage data allows quantifying monetary benefits associated with each ticket. We find that turnout is much higher among students who benefit a lot from having a ticket, suggesting instrumental voting. In each referendum, a majority votes in line with self-interest, providing strong evidence for pocketbook voting. However, social preferences like altruism, public good considerations and paternalism shift the vote of a sizable minority against their own financial interest.

Suggested Citation

  • Johannes Meya & Panu Poutvaara & Robert Schwager, 2015. "Pocketbook Voting and Social Preferences in Referenda," CESifo Working Paper Series 5267, CESifo.
    • Handle: RePEc:ces:ceswps:_5267
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    Cited by:

    1. Hillman, Arye L. & Metsuyanim, Kfir & Potrafke, Niklas, 2015. "Democracy with group identity," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 274-287.
    2. Philipp Harms & Claudi Landwehr, 2018. "Money is where the fun ends: material interests and individuals preference for direct democracy," Working Papers 1815, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    3. Avdeenko, Alexandra, 2018. "Long-term evidence of retrospective voting: A natural experiment from the German Democratic Republic," European Economic Review, Elsevier, vol. 103(C), pages 83-107.

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    More about this item

    Keywords

    pocketbook voting; social preferences; altruism; instrumental voting; public goods; referendum;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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