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Insights from the Field

Austerity's Hidden Cost: Voters React Stronger Than Expected


fiscal austerity
public opinion
voter backlash
europe
Political Behavior
BJPS
2 Stata files
1 PDF files
10 datasets
Dataverse
Voter Responses to Fiscal Austerity was authored by Evelyne Hübscher, Thomas Sattler and Markus Wagner. It was published by Cambridge in BJPS in 2021.

Dealing with rising public debt during elections is challenging. Governments often face significant voter backlash, contrary to common belief.

This study reveals a key flaw in previous research on fiscal austerity measures—a strategic selection bias that underestimated their political impact. Conducting survey experiments across five European countries (Spain, Portugal, Italy, the UK, and Germany), we demonstrate voters strongly oppose spending cuts, more so than tax increases or deficits.

Findings:

• Voters disproportionately dislike spending reductions proposed in austerity packages

• These policies significantly threaten government re-election chances despite their fiscal purpose

• Public backlash appears stronger when considering overall costs rather than just deficit reduction potential

This challenges policy recommendations from international financial institutions and shows the political risks of austerity measures outweigh previously understood electoral preferences.

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