Rationally Myopic Voter: Uncertainty, Distrust, and Populist Policy

• In Event: Voter Preferences and Behavior in Comparative Politics

Brief Overview

This paper applies asset pricing theory to show that even fully rational voters act myopically. When voters face an uncertain political environment, they increase discount rates of their utility function and place a premium on short-term gains.

Authors

• Sota Kato, Tokyo Foundation for Policy Research

• Masayuki Inui, Bank of Japan