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Globalization, Time-Preferences, and Populist Voting

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  • Thomas Aronsson
  • Clemens Hetschko
  • Ronnie Schöb

Abstract

Societies see growing support for populist politicians who advocate an end to globalization. Our behavioral economics model links impatience to voters’ appraisals of an income shock due to globalization that is associated with short-run costs and delayed gains. The model shows that impatient individuals may reject further globalization if they are subject to borrowing constraints. Using German data, we confirm that impatient voters choose right-wing anti-globalist parties. Similarly, we show for the United Kingdom that a preference for immediate gratification increases the support for right-wing anti-globalist parties as well as for Brexit. A policy implication of our study is that governments may use up-front redistribution to gain voters’ support for further globalization.

Suggested Citation

  • Thomas Aronsson & Clemens Hetschko & Ronnie Schöb, 2020. "Globalization, Time-Preferences, and Populist Voting," CESifo Working Paper Series 8466, CESifo.
  • Handle: RePEc:ces:ceswps:_8466
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    More about this item

    Keywords

    globalization; time-preference; impatience; time-inconsistency; populism; Brexit; up-front redistribution;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • F15 - International Economics - - Trade - - - Economic Integration
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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