Party cues or policy information? The differential influence of financial and economic literacy on economic policy preferences

Beatrice Magistro

Journal of Public Policy, 2022, vol. 42, issue 3, 465-488

Abstract: Political economy theories tell us that policy preferences are driven by economic self-interest and that party cues can be a rational decision-making strategy. But does citizens’ ability to assess their self-interest influence the sources of information they rely on and their policy choices? I hypothesise that financial and economic literacy influences the type of information individuals are responsive to, and ultimately, their economic policy preferences. Using a survey experiment on price controls in Italy, I manipulate whether citizens receive party cues or policy information. I show that financially and economically literate individuals are more likely to understand information concerning the costs and benefits of the policy under analysis, and to be responsive to it. This is not the case for financially and economically illiterate individuals, who are more receptive to party cues, even when such cues are misleading and lead them to support welfare-reducing policies.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:jnlpup:v:42:y:2022:i:3:p:465-488_3

Access Statistics for this article

More articles in Journal of Public Policy from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().