When Does Government Ideology Matter? Evidence from Subjective Well-Being in Europe
27 Pages Posted: 6 Oct 2014
Date Written: October 5, 2014
This paper considers how lay theory and perceptions of issue ownership affect voters’ expectations of political and economic developments. These expectations are likely to mediate the effects on subjective well-being of specific developments. Estimates employing a panel of 29 European countries observed between 1975 and 2011 suggest that problems within an issue attributed to the ideological side of the incumbent government exerts much stronger well-being effects than when similar problems arise with ideologically opposite governments. The evidence suggests a ‘Nixon goes to China’ effect in well-being.
Keywords: Governance, life satisfaction, public choice, issue ownership
JEL Classification: D63, E03, I31, Z13
Suggested Citation: Suggested Citation