31.05.2022; Vortragsreihe
Colloquium: Clemens Hetschko (Leeds University Business School) "Populism and Impatience"
Abstract:
We examine the striking finding that voters of right-wing populist parties are, on average, less patient than voters of other parties. Our empirical framework considers direct and indirect effects of impatience on voting, for instance via education and income. Using data for Germany and the United Kingdom, we confirm the existence of these effects. Notably, the direct effect of impatience on populist voting appears strong, even after controlling for various other traits and socio-demographic characteristics. To rationalize this result, we present a theoretical model that links voters’ impatience to their appraisals of a welfare-increasing income shock associated with short-run costs and delayed gains. This setting reflects core themes of right-wing populism, namely anti-elitism, economic nationalism and the neglect of future costs. Impatient individuals reject the income shock as they are unable to adjust to it, in particular if they are borrowing-constraint. The policy-maker can counteract this mechanism by means of up-front redistribution.