IDEAS home Printed from https://ideas.repec.org/a/spr/ecogov/v25y2024i3d10.1007_s10101-024-00315-x.html
   My bibliography  Save this article

Predicting satisfaction with democracy in Germany using local economic conditions, social capital, and individual characteristics

Author

Listed:
  • Tim Friehe

    (University of Marburg
    CESifo
    EconomiX)

  • Christian Pfeifer

    (Leuphana University Lueneburg
    Forschungsinstitut zur Zukunft der Arbeit (IZA))

Abstract

This paper explores the empirical relationship between local economic conditions, social capital, and individual characteristics on the one hand and satisfaction with democracy on the other hand, using detailed information from the German Socio-Economic Panel. In contrast to previous literature, we focus on economic conditions at the state level instead of the national one. We find that local economic conditions, proxies of social capital, and individual characteristics (e.g., risk attitude, reciprocity, past unemployment experience) are important correlates of satisfaction with democracy and that some heterogeneity between genders, West and East Germany, and people with and without college degree exists in the data.

Suggested Citation

  • Tim Friehe & Christian Pfeifer, 2024. "Predicting satisfaction with democracy in Germany using local economic conditions, social capital, and individual characteristics," Economics of Governance, Springer, vol. 25(3), pages 335-377, September.
  • Handle: RePEc:spr:ecogov:v:25:y:2024:i:3:d:10.1007_s10101-024-00315-x
    DOI: 10.1007/s10101-024-00315-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10101-024-00315-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10101-024-00315-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sergei Guriev, 2018. "Economic Drivers of Populism," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 200-203, May.
    2. Duha Altindag & Naci Mocan, 2010. "Joblessness and Perceptions about the Effectiveness of Democracy," Journal of Labor Research, Springer, vol. 31(2), pages 99-123, June.
    3. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
    4. Bernd Hayo & Florian Neumeier, 2022. "Households’ inflation perceptions and expectations: survey evidence from New Zealand," International Economics and Economic Policy, Springer, vol. 19(1), pages 185-217, February.
    5. Poutvaara, Panu & Steinhardt, Max Friedrich, 2018. "Bitterness in life and attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 55(C), pages 471-490.
    6. Timothy Besley & Sacha Dray, 2024. "Trust and State Effectiveness: The Political Economy of Compliance," The Economic Journal, Royal Economic Society, vol. 134(662), pages 2225-2251.
    7. Petrunyk Inna & Pfeifer Christian, 2016. "Life Satisfaction in Germany After Reunification: Additional Insights on the Pattern of Convergence," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 217-239, March.
    8. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    9. Anke Becker & Thomas Deckers & Thomas Dohmen & Armin Falk & Fabian Kosse, 2012. "The Relationship Between Economic Preferences and Psychological Personality Measures," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 453-478, July.
    10. Friedrichsen, Jana & Zahn, Philipp, 2014. "Political support in hard times: Do people care about national welfare?," European Journal of Political Economy, Elsevier, vol. 35(C), pages 23-37.
    11. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 963-1002.
    12. Nowakowski, Adam, 2021. "Do unhappy citizens vote for populism?," European Journal of Political Economy, Elsevier, vol. 68(C).
    13. Kauder, Björn & Potrafke, Niklas & Ursprung, Heinrich, 2018. "Behavioral determinants of proclaimed support for environment protection policies," European Journal of Political Economy, Elsevier, vol. 54(C), pages 26-41.
    14. Patricia Funk & Christina Gathmann, 2015. "Gender gaps in policy making: evidence from direct democracy in Switzerland," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(81), pages 141-181.
    15. Sergei Guriev & Elias Papaioannou, 2022. "The Political Economy of Populism," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 753-832, September.
    16. Cantoni, Enrico & Gazzè, Ludovica & Schafer, Jerome, 2021. "Turnout in concurrent elections: Evidence from two quasi-experiments in Italy," European Journal of Political Economy, Elsevier, vol. 70(C).
    17. Nadia Fiorino & Emma Galli & Nicola Pontarollo, 2021. "Does Social Capital Affect Voter Turnout? Evidence from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 289-309, July.
    18. Christian Dippel & Robert Gold & Stephan Heblich & Rodrigo Pinto, 2022. "The Effect of Trade on Workers and Voters," The Economic Journal, Royal Economic Society, vol. 132(641), pages 199-217.
    19. Stefan Dahlberg & Jonas Linde & Sören Holmberg, 2015. "Democratic Discontent in Old and New Democracies: Assessing the Importance of Democratic Input and Governmental Output," Political Studies, Political Studies Association, vol. 63, pages 18-37, April.
    20. Matteo Pazzona, 2020. "Do victims of crime trust less but participate more in social organizations?," Economics of Governance, Springer, vol. 21(1), pages 49-73, March.
    21. Goebel Jan & Grabka Markus M. & Liebig Stefan & Kroh Martin & Richter David & Schröder Carsten & Schupp Jürgen, 2019. "The German Socio-Economic Panel (SOEP)," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(2), pages 345-360, April.
    22. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    23. Biermann, Philipp & Welsch, Heinz, 2021. "An anatomy of East German unhappiness: The role of circumstances and mentality, 1990–2018," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 1-18.
    24. Ulrike Malmendier, 2021. "FBBVA Lecture 2020: Exposure, Experience, and Expertise: Why Personal Histories Matter in Economics [Macroeconomic Experiences and Risk Taking of Euro Area Households]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 2857-2894.
    25. Vani Borooah & Anastasios Katos & Eleni Katsouli, 2013. "Inter-country differences in voter satisfaction with the democratic process: a study of world elections," Public Choice, Springer, vol. 157(3), pages 569-584, December.
    26. van Hoorn, André & Maseland, Robbert, 2010. "Cultural differences between East and West Germany after 1991: Communist values versus economic performance?," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 791-804, December.
    27. Dimi Jottier & Bruno Heyndels, 2012. "Does social capital increase political accountability? An empirical test for Flemish municipalities," Public Choice, Springer, vol. 150(3), pages 731-744, March.
    28. Yotam Margalit, 2019. "Economic Insecurity and the Causes of Populism, Reconsidered," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 152-170, Fall.
    29. Wagner, Alexander F. & Schneider, Friedrich & Halla, Martin, 2009. "The quality of institutions and satisfaction with democracy in Western Europe -- A panel analysis," European Journal of Political Economy, Elsevier, vol. 25(1), pages 30-41, March.
    30. Ulrike Malmendier, 2021. "Exposure, Experience, and Expertise: Why Personal Histories Matter in Economics," NBER Working Papers 29336, National Bureau of Economic Research, Inc.
    31. Christian Pfeifer & Stefan Schneck, 2017. "Do unfair perceived own pay and top managers’ pay erode satisfaction with democracy?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(17), pages 1263-1266, October.
    32. Nils Braakmann, 2018. "Company Closures and the Erosion of the Political Centre: Evidence from Germany," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 835-858, December.
    33. Michele Roccato & Nicoletta Cavazza & Pasquale Colloca & Silvia Russo, 2020. "Three Roads to Populism? An Italian Field Study on the 2019 European Election," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1222-1235, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yapeng Li & Zihao Wang & Yuanyuan Zhu, 2024. "How Does Government Intervention Affect Community Residents’ Satisfaction with Public Services—Evidence from CSS (2021) in China," Sustainability, MDPI, vol. 16(17), pages 1-24, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Pfeifer, 2023. "Can worker codetermination stabilize democracies? Works councils and satisfaction with democracy in Germany," Working Paper Series in Economics 420, University of Lüneburg, Institute of Economics.
    2. Kellermann, Kim Leonie, 2024. "Trust we lost: The impact of the Treuhand experience on political alienation in East Germany," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 54-75.
    3. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    4. Eugenio Levi & Isabelle Sin & Steven Stillman, 2024. "The lasting impact of external shocks on political opinions and populist voting," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 349-374, January.
    5. Gavresi, Despina & Litina, Anastasia, 2023. "Past exposure to macroeconomic shocks and populist attitudes in Europe," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 989-1010.
    6. Ms. Paola Giuliano & Mr. Antonio Spilimbergo, 2024. "Aggregate Shocks and the Formation of Preferences and Beliefs," IMF Working Papers 2024/195, International Monetary Fund.
    7. Pan, Wei-Fong, 2023. "The effect of populism on high-skilled migration: Evidence from inventors," European Journal of Political Economy, Elsevier, vol. 79(C).
    8. Rohde, Nicholas, 2023. "Economic insecurity, nativism, and the erosion of institutional trust," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 1017-1028.
    9. Senik, Claudia, 2009. "Direct evidence on income comparisons and their welfare effects," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 408-424, October.
    10. AndrewE. Clark & Claudia Senik, 2010. "Who Compares to Whom? The Anatomy of Income Comparisons in Europe," Economic Journal, Royal Economic Society, vol. 120(544), pages 573-594, May.
    11. Gianmarco Daniele & Amedeo Piolatto & Willem Sas, 2018. "Who Sent You? Strategic Voting, Transfers and Bailouts in a Federation," Working Papers. Serie AD 2018-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    12. Budría, Santiago & Ferrer-i-Carbonell, Ada, 2012. "Income Comparisons and Non-Cognitive Skills," IZA Discussion Papers 6419, Institute of Labor Economics (IZA).
    13. Alpaslan Akay & Olivier Bargain & Klaus F. Zimmermann, 2017. "Home Sweet Home?: Macroeconomic Conditions in Home Countries and the Well-Being of Migrants," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 351-373.
    14. Maite Blázquez Cuesta & Santiago Budría, 2014. "Deprivation and Subjective Well-Being: Evidence from Panel Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 655-682, December.
    15. Drakopoulos, Stavros, 2011. "Hierarchical Needs, Income Comparisons and Happiness Levels," MPRA Paper 48343, University Library of Munich, Germany.
    16. Deckers Thomas & Falk Armin & Schildberg-Hörisch Hannah, 2016. "Nominal or Real? The Impact of Regional Price Levels on Satisfaction with Life," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1337-1358, September.
    17. Andrew E. Clark & Claudia Senik, 2010. "Will GDP growth increase happiness in developing countries?," PSE Working Papers halshs-00564985, HAL.
    18. Gustavo Gouvêa Maciel & Luís de Sousa, 2018. "Legal Corruption and Dissatisfaction with Democracy in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(2), pages 653-674, November.
    19. Paul Dolan & Robert Metcalfe, 2008. "Comparing Willingness-to-Pay and Subjective Well-Being in the Context of Non-Market Goods," CEP Discussion Papers dp0890, Centre for Economic Performance, LSE.
    20. Stefano Bartolini & Ennio Bilancini & Maurizio Pugno, 2013. "Did the Decline in Social Connections Depress Americans’ Happiness?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 1033-1059, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ecogov:v:25:y:2024:i:3:d:10.1007_s10101-024-00315-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.