Spending Preferences Research Articles

Employed in Conflict: Explaining Social Policy Preferences of a Tripartite Labour Market

A central challenge in understanding public opinion shifts is identifying whose opinions change. Political economists try to uncover this by exploring voters' economic vulnerability, particularly the relationship between labor-market risk and redistribution preferences. Predominantly, however, such work imputes risk from occupational or sectoral characteristics. Due to within-occupational inequality in exposure to risk, considerable variation remains unexplored. I propose an individual-level, dynamic account of risk inferred from job tenure, contract type and expectations of job security. These aspects, importantly, account for individual variation in risk and the possibility that one's experience of risk may change across time. The results indicate the usefulness of this approach to risk in understanding changes in social spending preferences.

Guns Yield Butter? An Exploration of Defense Spending Preferences

The popular notion of a trade-off between social and defense spending—or guns versus butter—appears often in elite discourse, popular media, and empirical studies of budgetary politics. Yet, there are good reasons to suspect that the public’s preferences for these types of spending do not reflect that trade-off. I develop a theory that whether social and defense spending preferences are competing or complementary depends on if the respondent views the government as an important contributor to job creation. Using data from fifty-nine surveys in twenty-seven countries from 1985 to 2008, I show that favoring government-financed job creation makes a respondent much more likely to view social and defense spending as complementary. Indeed, aside from the anomalous case of the United States, preferences are consistent with guns yield butter instead of guns versus butter. This theory has important implications for the thermostatic model of policy responsiveness and theories of budgetary politics.

Tax Constraints, Social Policy Preferences, and Support for Redistribution

The aim of this paper is to explore whether support for the welfare state is lower if people are made aware of its costs. Using data from a series of survey experiments in the German Internet Panel, we analyse individual spending preferences for different areas of the welfare state and support for redistribution. Tax constraints lead to lower support for unemployment benefits and for redistribution. Tax constraints do not affect support for more spending on pensions, healthcare, and long-term care. We consider whether the effect of tax constraints varies with pre-existing political attitudes or with individual material circumstances. We find little evidence that a political ideology makes respondents more responsive to tax constraints. However, we find some support that low income respondents are less responsive to the tax constraint and maintain their high support despite its costs. Attitudes towards the welfare state are not independent of attitudes towards taxation, and we conclude that our understanding of public attitudes might considerably benefit from combining these different strands of the literature.

Beyond new roads and bridges

Purpose The purpose of this paper is to compare public preferences for investment and spending on non-automobile infrastructures (mass transit and bicycling) to preferences for new roads and the repair of current highways. The study explores the factors that explain preferences for non-automobile infrastructure using a three-factor model including self-interest (personal transportation benefits), concern for community-wide benefits (political beliefs), and concern for the economic impact. The study uses a case study of the urban context of the Hampton Roads region of Southeastern Virginia (USA). Design/methodology/approach The analysis uses data from a 2013 telephone survey of urban residents in the Hampton Roads area. Survey respondents were asked to identify their two investment priorities from four options: repairing existing roads, bridges, and tunnels; constructing new or expanding roads, bridges, and tunnels; expanding mass transit; and expanding bicycle routes and improving bike safety. Findings Repairing existing highway infrastructure is the most popular spending priority (66 percent of residents). There is as much support (46 percent) for investing in non-automobile infrastructure as for investing in new roads, bridges, and tunnels. Significant predictors of support for non-automobile infrastructure, using the three-factor model, are: length of commute time, self-identification as liberal, use of light rail, and a belief that light rail contributes to economic development. Originality/value The study examines public preferences for both non-traditional and traditional transportation infrastructure investments. It highlights the factors that contribute to public support for different transportation spending options.

Climate Change, Population Ageing and Public Spending: Evidence on Individual Preferences

Economic theory as well as empirical research suggest that elderly people prefer public spending on policies yielding short-term benefits. This might be bad news for policies aimed at combating climate change: while the unavoidable costs of these policies arise today, the expected benefits occur in the distant future. Drawing on data from over 12,000 households and using the ordered logit and the generalized ordered logit model, we analyze whether attitudes towards climate change and climate policies as well as public spending preferences differ with respect to age. Our estimates show that elderly people are less concerned about climate change, but more concerned about other global challenges. Furthermore, they are less likely to support climate-friendly policies, such as the subsidization of renewables, allocate less public resources to and have lower willingness-to-pay for environmental policies. Thus, our results suggest that the ongoing demographic change in industrialized countries may undermine climate policies.

Migrants' support for welfare state spending in Denmark, Germany, and the Netherlands

AbstractThis contribution describes differences between 10 migrant groups and natives in their attitudes towards government spending in three residence countries: Denmark, Germany, and the Netherlands. Previous research provided evidence that “migrants” as a catch‐all category of people from different origins are in favor of more government spending on social welfare. We study to what extent support for government spending can be explained by self‐interest explanations of welfare state attitudes as well as by differences in ideological position. The contribution employs data from the Migrants' Welfare State Attitudes project, including migrant groups from similar origins in Denmark, Germany, and the Netherlands. The study moves beyond the larger migrant groups of Turks and Poles that received attention in previous research as well, and includes a greater variety of groups that differ in terms of their skill levels. The overall finding is that migrants' welfare state spending preferences are, as in the case of natives, significantly related to socio‐demographic differences and standard ideology measures of attitudes to regulation of the economy and family values. However, even with these standard variables included, spending preferences differ strongly between migrant groups, residence countries, and welfare spending domain. A comparison between country of origin and residence country provisions seems to be a promising path for further understanding migrant group differences in welfare state spending attitudes. The study challenges the idea that all migrants are supportive of extended welfare state arrangements.

Community views on factors affecting medicines resource allocation: cross-sectional survey of 3080 adults in Australia.

Objective The aim of the present study was to determine Australian community views on factors that influence the distribution of health spending in relation to medicines. Methods A cross-sectional web-based survey was performed of 3080 adults aged ≥18 years. Participants were asked to rank, in order of importance, 12 criteria according to which medicines funding decisions may be made. Results Of all respondents, 1213 (39.4%) considered disease severity to be the most important prioritisation criterion for funding a new medicine. This was followed by medicines treating a disease affecting children (13.2%) and medicines for cancer patients (9.1%). Medicines targeting a disease for which there is no alternative treatment available received highest priority from 8.6% of respondents. The remaining eight prioritisation criteria were each assigned a top ranking from 6.6% to 1.7% of respondents. Medicines targeting a disease for which there is no alternative treatment available were ranked least important by 7.7% of respondents, compared with 2.4%, 1.9% and 1.0% for medicines treating severe diseases, diseases affecting children and cancer respectively. 'End-of-life treatments' and 'rare disease therapies' received the least number of highest priority rankings (2.0% and 1.7% respectively). Conclusions These results provide useful information about public preferences for government spending on prescribed medicines. Understanding of public preferences on the funding of new medicines will help the Pharmaceutical Benefits Advisory Committee and government determine circumstances where greater emphasis on equity is required and help inform medicines funding policy that best meets the needs of the Australian population. What is known about this topic? There is increased recognition of the importance of taking into account public preferences in the heath technology assessment (HTA) decision-making process. What does this paper add? The Australian public view the severity of disease to be the most important funding prioritisation criterion for medicines, followed by medicines used to treat children or to treat cancer. What are the implications for practitioners? The general public are capable of giving opinions on distributional preferences. This information can help inform medicines funding policy and ensure that it is consistent with the values of the Australian population.

Place attachment and spending preferences in a local public park system: The case of corporate sponsorship

In light of reduced public spending on local park and recreation services, corporate sponsorship has received attention as an effective, but potentially controversial, alternative funding strategy. Visitor place attachment may significantly influence the acceptability of specific spending practices of sponsorship revenue. The present study examines the influence of park users’ place attachment on the relationship between their attitude toward corporate sponsorship and a recreation agency’s specific spending decisions. It was hypothesized that place attachment would moderate the relationship between attitudes toward corporate sponsorship and support for spending revenue on facilities and on programming. Analysis showed that place identity was a significant moderator, strengthening the relationship between attitudes toward sponsorship and spending support for programming. As place identity increased and attitudes toward sponsorship became more positive, support for spending on programming increased concomitantly. Implications for future research and practice are discussed.

Post-democracy and institutionalized austerity in France: budgetary politics during Fran\xe7ois Hollande\u2019s presidency

This paper applies the concept of post-democracy coined by Crouch to shed light on the emerging political dynamics of macroeconomic policy coordination in the Eurozone as they applied to France during Hollande’s presidency. Firstly, the paper explains the nature of EMU reform, characterized here as post-democratic by institutional design, before analysing its impact on France’s budgetary politics. Finally, the French case involving Hollande’s balancing act between supranational rules and domestic spending preferences is used as a way to reflect on the stability of this post-democratic arrangement for rescuing the Euro. The 2017 presidential election pitting Macron against Le Pen showed that post-democracy by design is sustainable only if the supply side of politics remains supportive of EMU—a condition undermined by the institutionalization of austerity, at least in France.

Unions, Parties, and the Politics of State Government Legacy Cost

AbstractMany American state governments have made extensive promises to pay for employees’ health care and other benefits in retirement. Currently estimated at over $1 trillion in unfunded liabilities, these other postemployment benefits (OPEB) are creating a major fiscal problem for state governments. In this article, we examine the politics of OPEB. We seek to explain the variation in the generosity of OPEB across U.S. states. We argue that party competition theories do not adequately explain the outcomes we observe. Instead, we draw on the emerging Schattschneiderian approach to the politics of public policy to show that public union strength conditions a party's incentives to represent unions’ interests. In states where public sector unions are strong, unions can find their way into either party's coalition. We find that Republicans are more responsive to public union interests than either their ideological brand or prior research would suggest. It is only in states where public employees are weak that Republicans can act unilaterally and enact their preference for less government spending. To test our theories, we carry out an empirical analysis using a newly assembled data set of per capita OPEB liabilities across 49 states.

Children’s and Adolescents’ Expression of Gratitude Across Societies: Findings From Turkey

This study examined whether children’s expression of gratitude and processes potentially related to this expression, such as wishes and spending preferences, would vary across childhood in an urban center of a majority world country. We collected data from 422 boys and girls aged 7 to 14 years residing in Izmir, Turkey. Results indicated that the expression of connective gratitude was common across all ages, and there was a decrease in the expression of concrete gratitude with an increase in age. There was no relationship between types of wishes and gratitude or wishes and spending preferences; however, girls expressed less concrete gratitude and fewer hedonistic wishes compared with boys. Saving and donating were the most common spending preferences, and with an increase in age, the tendency for spending money to buy things for oneself increased. These findings are discussed in relation to how cultural experiences may influence the development of gratitude in this population.

Expressions of Gratitude, Wishes, and Spending Preferences Among Chinese Children and Adolescents

The present study investigated age-related differences in gratitude expression and spending preferences, as well as their relations with wishes among 520 7- to 14-year-old Chinese children and adolescents. Results suggested that older Chinese children were more likely than younger ones to express connective gratitude and that the probability of expressing verbal and concrete gratitude remained stable across ages. In addition, older children tended to spend less money on buying things for others as compared with younger children. Regarding the relations between wish types and gratitude and spending preferences, we found that children who wished for social well-being were more likely to express connective gratitude, and to spend a larger amount of money on charity. In addition, children who had hedonistic wishes were more likely to express concrete gratitude. Findings of the present study contribute to the theoretical understanding of gratitude development among Chinese children and adolescents.

How do Economic Circumstances Determine Preferences? Evidence from Long-run Panel Data

Preferences for redistribution and social spending are correlated with income and unemployment risk, but it is unclear how these relationships come about. I build a theory emphasizing that only large changes in economic circumstances provide the information and motivation needed for people to change their preferences. Stable long-run preferences are shaped mainly by early socialization, which includes economic and ideological influences from the family, and early labor market experiences. Enduring shocks, low intergenerational mobility and the tendency of left-wing parents to be poorer generate correlations between circumstances and preferences. Because preferences are stable, greater inequality may not increase aggregate support for redistribution. Support is found for the theory with panel data from Switzerland, using a range of empirical tests.

The Development of Gratitude in Brazilian Children and Adolescents

This study aimed to examine age-related changes in gratitude expression and spending preferences and the associations between children’s greatest wish and gratitude expression. Participants were 285 children of ages 7 to 14 ( M = 10.87, SD = 2.27, 54% girls) from public and private schools in Porto Alegre, a large urban center of Brazil. We found that verbal gratitude was the most common type of gratitude expression. Older children were more likely to express verbal and less likely to express concrete gratitude than were younger participants; they were also more likely to choose saving money for the future and less likely to choose donating to the poor. We also found a positive correlation between hedonistic wishes and concrete gratitude and between social well-being wishes and connective gratitude. Our results suggest that gratitude is linked to the ability of thinking about others, and may be hindered by a focus on immediate pleasure.

Wishes, Gratitude, and Spending Preferences in Russian Children

Gratitude is an important virtue in any cultural group. In Russian culture, gratitude is a salient and highly promoted trait that is seen as one of the cornerstones of social cohesion. In this study, we investigate wishes, expressions of gratitude, and self-reported spending preferences in 305 Russian 7- to 14-year-olds. Using logistic regression analysis, we found that the younger Russian children were more likely to express concrete gratitude, whereas the older children more frequently expressed connective gratitude. The younger children were also more likely to express wishes for immediate gratification, whereas the older children focused more on self-oriented wishes. Moreover, we found that about one in every six children expressed wishes for well-being of others as their greatest wish. The children’s intent to donate money to charity/poor was predicted by children’s wishes for others’ well-being. These findings are discussed through the lens of Russian culture and history.

The Development of Gratitude in South Korean Youth

Guided by Kağıtçıbaşı’s work on cultural values, the current study sought to examine the gratitude expressions, wishes, and spending preferences of South Korean children and adolescents. Participants included ( N = 229) 7- to 14-year-olds ( M = 10.79, SD = 2.19; 54% girls; 55.3% middle class) from Kimpo, and Seoul, South Korea. Regression analyses revealed that older Korean youth were less likely to express concrete gratitude than were younger Korean youth. In addition, older Korean youth were less likely to give their money to charity or the poor. With regard to wishes, Korean youth who wished for the well-being of others were more likely to also give their money away to others. This study contributed to the gratitude literature by considering how gratitude, wishes, and spending preferences may manifest themselves in an understudied group, young Koreans.

Ownership and corporate social responsibility in Indian firms

PurposeThe purpose of this paper is to look at the association between different ownership categories and corporate social responsibility (CSR) spending of selected Indian firms.Design/methodology/approachRandom-effects Tobit panel regression is performed on a panel of 4,388 firm years of 1,722 unique firms over a three-year period (2014-2016).FindingsDifferent categories of institutional investors have different preferences for CSR spending of a firm. Promoters of business-group affiliated and unaffiliated firms also behave differently towards CSR activities of their firms.Research limitations/implicationsHeterogeneous behavior of institutional investors is revealed through the study. Foreign institutions and domestic banks are supportive of CSR investments of a firm. Promoters of family firms and group affiliates also diligently plan CSR activities.Practical implicationsManagers cannot ignore the heterogeneities of institutional investors in their investment decisions. Individual investors can align their philanthropic preferences with those of different types of institutional investors or firms.Social implicationsFamily-owned firms play a significant role in CSR activities of emerging economies, while individual promoters are not as attracted by the reputational prospects of CSR.Originality/valueThis paper considers the role of heterogeneities of institutional investors in influencing CSR spending of emerging-economy firms. This heterogeneity has not been previously studied in this context.

Political inequality in America: Who loses on spending policy? When is policy less biased?

ABSTRACT Rapid growth in America’s economic inequality and endemic disadvantages among racial minorities have deepened fears about unequal political influence. From separate studies, it appears that the government responds more to the wealthy and to whites. But critical questions remain unanswered. What are relative contributions of race and class to government responsiveness? Why do these inequalities exist in the first place? And under what contexts are disparities in responsiveness reduced? To answer these questions, we assess the congruence between individual-level policy preferences and policy outcomes using the General Social Survey. We match individual spending preferences in 11 policy areas with actual federal spending to see whose preferences are realized. We find that race, more regularly than class, shapes government responsiveness. We also find that Democratic Party control eliminates most of the racial bias in responsiveness. Economic growth also narrows racial inequalities.

Globalization and Multifaceted Welfare State Attitudes: Evidence from South Korea

How does economic globalization influence individuals’ welfare attitudes? We part ways with the literature whose focus has been on identifying the losers and exploring whether and to what extent they demand government compensation. By intersecting two dimensions of globalization perceptions – (1) winners and losers and (2) national and individual effects –, we propose four types of citizens: collective winner, lone winner, lone loser, and collective loser. We argue that the typology allows us to systematically explore how economic globalization provokes three widely-discussed, distinctive motives behind welfare demand: insurance-seeking, equality-seeking as well as compensation-seeking. We examine our theoretical expectations with the case of South Korea, where we survey social spending preferences under different hypothetical scenarios of fiscal constraint and recipient targeting. We find consistent support for the insurance-seeking motive: lone winners who see potential risks of economic globalization are most likely to support welfare spending as an attempt to insure against the vagaries ex-ante. Our findings have implications for the direction of welfare state development under globalization.

Public opinion and the political economy of educational reforms: A survey

In the political economy of education policy, interactions between policymakers and public opinion can create discrepancies between political awareness and action. While a large literature studies public opinion on different aspects of the welfare state, research has only recently started to investigate the public’s attitudes towards education policy. We survey this emerging literature with a particular focus on public preferences for education spending in different sociodemographic subgroups, policy trade-offs, support for specific education reforms, and the importance of information for public preferences. While the available evidence is multifaceted, there is some general indication that citizens place high priority on education policy, show substantial willingness to reform, and are responsive to information and adequate reform designs.