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Political Advertising, Expectations, and Household Consumption

Author

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  • Cody Couture
  • Abhiprerna Smit
  • Rene Zamarripa

Abstract

This paper examines the impact of political advertising on household consumption behavior in the United States. Using a regression discontinuity design that exploits variation in advertisement exposure across media market borders, we show that exposure to political advertisements significantly affects household consumption. Weekly county-level nondurable spending increases by 0.24% for every additional one standard deviation of positive economic-themed advertisements. The effect is heterogeneous by county-level demographics, with a stronger consumption response from counties with a higher proportion of older and low-income residents. We also provide evidence on the underlying mechanisms, showing that these effects operate through changes in household sentiment and the economic information conveyed in the advertisements.

Suggested Citation

  • Cody Couture & Abhiprerna Smit & Rene Zamarripa, 2026. "Political Advertising, Expectations, and Household Consumption," Working Papers 177, Economics Department, William & Mary.
    • Handle: RePEc:cwm:wpaper:177
    DOI: https://dx.doi.org/10.2139/ssrn.6555648
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    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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