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Growth, Inequality, and Party Support: Valence and Positional Economic Voting

Ruth Dassonneville () and Michael S. Lewis-Beck ()
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Ruth Dassonneville: Department of Poitical Science, University of Montréal
Michael S. Lewis-Beck: Department of political science, University of Iowa

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: Economic growth helps governments get reelected. But does growth, as a valence issue, exhaust the possibilities for the economic vote? What about the impact of inequality as a positional economic issue? Can rising economic inequality make or break a government, independent of the country’s growth trajectory? We show, via an examination of 310 elections in established democracies, across time and space, that growth and inequality both matter for incumbent government support. Somewhat surprisingly, we find that both left-wing and right-wing incumbents are held accountable for changes in inequality. While these effects appear unaltered by structural factors such as federalism or the electoral system, their impact seems to depend, to some extent, on whether the country is going through economic hard times.

Pages: 34 pages
Date: 2018-02
New Economics Papers: this item is included in nep-cdm and nep-pol
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