Economic voting under the economic crisis: Evidence from Greece

Having joined the Eurozone in 2001, Greece experienced a short period of economic euphoria before confronting a major financial crisis some nine years later. In the period between joining the Eurozone and accepting the joint IMF/EU bailout package, the economic situation facing Greek voters changed dramatically. I use this setting to test the economic voting hypothesis. Using longitudinal aggregate data from 1981 to 2009, I investigate the relationship between macroeconomic indicators and vote share of the incumbent party to test the “grievance asymmetry” hypothesis. Moreover, by using individual-level data from 2004 to 2009, I investigate the extent to which retrospective sociotropic evaluations about the state of the economy are associated with support for the incumbent party. The results suggest that sociotropic economic evaluations are associated with government party support, but in a period when the economy is at its worst the incumbent has no real chance of winning and should expect support only from its long-time loyal supporters.