Article ID Journal Published Year Pages File Type
5068363 European Journal of Political Economy 2007 13 Pages PDF
Abstract

This paper investigates how households form subjective preferences. We examine the relationship between subjective economic confidence or sentiments and the perception of the incumbent government's competence, and consider how preferences affect each other. We further consider consequences of different presidencies. A theoretical model shows how households 'anchor' subjective views of the incumbent's competence on the household's confidence. Empirical analysis confirms the posited behavior and confirms that different presidencies have a bearing on the relationship.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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