How does political unrest inuence public policy? We assume that protests are an emotional reaction to unfair treatment. Individuals have a consistent view of fairness, that internalizes government constraints. Individuals accept lower welfare if the government is more constrained. This resignation e¤ect induces a benevolent government to delay unpleasant choices and accumulate public debt, to mitigate social unrest. More radical and homogenous groups are more prone to unrest, and hence more influential. Even if the government is benevolent and all groups are identical in their propensity to riot, equilibrium policy can be distorted. The evidence is consistent with these implications.
Emotions and Political Unrest
PASSARELLI, Francesco;
In corso di stampa
Abstract
How does political unrest inuence public policy? We assume that protests are an emotional reaction to unfair treatment. Individuals have a consistent view of fairness, that internalizes government constraints. Individuals accept lower welfare if the government is more constrained. This resignation e¤ect induces a benevolent government to delay unpleasant choices and accumulate public debt, to mitigate social unrest. More radical and homogenous groups are more prone to unrest, and hence more influential. Even if the government is benevolent and all groups are identical in their propensity to riot, equilibrium policy can be distorted. The evidence is consistent with these implications.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
