Risk, Risk Orientation and Policy Opinions: The Case of Free Trade

Abstract

This paper offers a general framework for thinking about how risk orientation influences public policy opinions with a specific focus on free trade. Previous political economy research shows that different segments of society are exposed to different types of economic risks from trade policy but none examines whether individual-level risk acceptance or risk aversion moderates the relationship between risk exposure and free trade opinions. We argue and find that individuals respond to trade risks selectively, depending on both their level of exposure to risk and their attitudes towards risk. The findings have implications for crafting and framing public policies because they highlight how individual characteristics are likely to shape the public response to policy proposals. Our findings suggest that there may be limits, in the aggregate, to the degree to which elites can alter the level of support for policies through framing or through offering risk-mitigating policy provisions.