Crisis & Belief – Confirmation Bias & The Behavioral Political Economy of Recession

22 Pages Posted: 7 Jun 2013 Last revised: 7 Nov 2014

Date Written: June 5, 2013

Abstract

The link between crisis and permanent increases in public spending has been investigated from the perspective of interest groups, bureaucratic growth, etc., while a demand perspective, i.e. the question of changing voter preferences, has been ignored. Survey data suggests that individuals become temporarily more in favor of government intervention in the aftermath of an economic crisis. The relationship is tested by an experiment in which salience of economic crisis generates favorable attitudes toward intervention for crisis related and unrelated topics.

Keywords: Economic Sociology, Behavioral Public Choice, Political Psychology

JEL Classification: Z13, Z18, D03, H12

Suggested Citation

Runst, Petrik, Crisis & Belief – Confirmation Bias & The Behavioral Political Economy of Recession (June 5, 2013). Available at SSRN: https://ssrn.com/abstract=2274999 or http://dx.doi.org/10.2139/ssrn.2274999

Petrik Runst (Contact Author)

University of Göttingen ( email )

Heinrich-Düker-Weg 6
Göttingen
Germany

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