(Wiley, 2024-05-08) Lago PeƱas, Santiago; Cadaval Sampedro, MarĆa; Herrero Alcalde, Ana
In this paper, we analyse the potential impact of policies aimed at fostering fiscal sustainability on citizensā preferences. A survey specifically designed for this purpose quantifies citizensā knowledge and concern about fiscal imbalances and the institutional framework that addresses them in Spain, and their possible electoral reactions to public spending cuts and tax increases. Using both ordered and unordered multinomial probit models, we corroborate that citizens tend to disapprove of retrenchment policies. However, the effect on citizensā voting intentions varies depending on their political ideology. We confirm that left-wing voters supporting the incumbent coalition parties prefer austerity policies based on the revenue side of the budget, while right-wing voters tend to approve retrenchments based on the expenditure side to a larger extent.
