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dc.contributor.authorBénabou, Rolanden_US
dc.date.accessioned2008-09-09en_US
dc.date.accessioned2010-07-07T11:34:40Z-
dc.date.available2010-07-07T11:34:40Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-2008040119en_US
dc.identifier.urihttp://hdl.handle.net/10419/35191-
dc.description.abstractI develop a model of ideologies as collectively sustained (yet individually rational) distortions in beliefs concerning the proper scope of governments versus markets. In processing and interpreting signals of the efficacy of public and market provision of education, health insurance, pensions, etc., individuals optimally trade off the value of remaining hopeful about their future prospects (or their children's) versus the costs of misinformed decisions. Because these future outcomes also depend on whether other citizens respond to unpleasant facts with realism or denial, endogenous social cognitions emerge. Thus, an equilibrium in which people acknowledge the limitations of interventionism coexists with one in which they remain obstinately blind to them, embracing a statist ideology and voting for an excessively large government. Conversely, an equilibrium associated with appropriate public responses to market failures coexists with one dominated by a laissez-faire ideology and blind faith in the invisible hand. With public-sector capital, this interplay of beliefs and institutions leads to history-dependent dynamics. The model also explains why societies find it desirable to set up constitutional protections for dissenting views, even when ex-post everyone would prefer to ignore unwelcome news.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3416en_US
dc.subject.jelH11en_US
dc.subject.ddc330en_US
dc.subject.keywordIdeologyen_US
dc.subject.keywordstatismen_US
dc.subject.keywordlaissez-faireen_US
dc.subject.keywordcognitive dissonanceen_US
dc.subject.keywordwishful thinkingen_US
dc.subject.keywordinstitutionsen_US
dc.subject.keywordpolitical economyen_US
dc.subject.keywordpsychologyen_US
dc.subject.stwMeinungen_US
dc.subject.stwWerturteilen_US
dc.subject.stwIdeologieen_US
dc.subject.stwSozialpsychologieen_US
dc.subject.stwVertrauenen_US
dc.subject.stwVerhaltenen_US
dc.subject.stwTheorieen_US
dc.titleIdeologyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn562985220en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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