Attitudes, Beliefs and Reforms: Measurement and Stylized Facts

Abstract

How strongly do citizens feel about different policies? How do these preferences affect structural reform? This paper proposes new, generalisable measures which quantify the strength of individuals' preferences for multiple non-pecuniary economic objectives. Using data from World Values Surveys on more than 100 economies over the period 1995-2020, our measures assess individuals' desire for environmental protection, inclusive and democratically governed societies, global integration, and economic competitiveness and resilience. We also provide a new, consistent measure of policy outcomes along these dimensions, using data compiled by the European Bank for Reconstruction and Development. Policy preferences vary markedly across economies. As economies develop, support for the green economy and inclusion becomes stronger while support for economic integration weakens. Preferences for democratic governance do not strengthen with income. Over time, preferences for a green economy and economic resilience have strengthened while desires for globally integrated, well-governed and competitive economies have weakened. Policy preferences are aligned, albeit imperfectly, with progress in reforms in respective areas, provided media is sufficiently free. The substantial variation in economic policy preferences observed across societies and over time may help explain differences in policy making and outcomes.

Keywords: policy preference, environment, inclusion, reform, survey JEL

JEL Classification: E61, I31, O43, O44