In Times of Crisis: The Conditions of Pocketbook Effects

When and how will personal financial (aka “pocketbook”) concerns drive citizens’ political decisions? Scholars remain puzzled by the mismatch between the expectation that pocketbook voting should occur and the reality that, according to most findings, it usually does not. Using original survey data collected immediately after Iceland’s second “Icesave” referendum (2011), I first report the results of an embedded experiment that successfully evokes greater pocketbook concern. Next, I analyze the determinants of retrospective pocketbook evaluations, showing that priming effects are conditioned by political sophistication such that high sophisticates are among the most likely to report negative economic assessments. I then turn to the consequences of these egocentric views for government approval. Mediation analysis confirms a significant indirect effect, suggesting that subjective pocketbook evaluations exert a strong influence on political attitudes that has been hidden in prior work. Results illuminate the contextual, cognitive, and causal circumstances under which pocketbook effects transpire and suggest new ways in which self-interest might matter for attitudes toward international political economy issues.