Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223538
Authors: 
Aronsson, Thomas
Hetschko, Clemens
Schöb, Ronnie
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper 8466
Abstract: 
Societies see growing support for populist politicians who advocate an end to globalization. Our behavioral economics model links impatience to voters’ appraisals of an income shock due to globalization that is associated with short-run costs and delayed gains. The model shows that impatient individuals may reject further globalization if they are subject to borrowing constraints. Using German data, we confirm that impatient voters choose right-wing anti-globalist parties. Similarly, we show for the United Kingdom that a preference for immediate gratification increases the support for right-wing anti-globalist parties as well as for Brexit. A policy implication of our study is that governments may use up-front redistribution to gain voters’ support for further globalization.
Subjects: 
globalization
time-preference
impatience
time-inconsistency
populism
Brexit
up-front redistribution
JEL: 
D15
D72
D91
F15
F61
F68
H53
Document Type: 
Working Paper

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