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Growth, inequality, and party support: Valence and positional economic voting

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  • Ruth Dassonneville
  • Michael S. Lewis-Beck

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 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.

Suggested Citation

  • Ruth Dassonneville & Michael S. Lewis-Beck, 2018. "Growth, inequality, and party support: Valence and positional economic voting," Working Papers. Collection A: Public economics, governance and decentralization 1804, Universidade de Vigo, GEN - Governance and Economics research Network.
    • Handle: RePEc:gov:wpaper:1804
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    File URL: http://infogen.webs.uvigo.es/WP/WP1804.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic voting; growth; inequality; valence; positional economic voting; social welfare spending.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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