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Disagreement Spillovers

Published 17 Nov 2024 in econ.GN and q-fin.EC | (2411.11186v2)

Abstract: As US political party leaders increasingly take stances both on economic and cultural (i.e., social policy) issues, the economic views of opposite cultural groups are growing apart. This paper explores a novel explanation for this phenomenon. I provide experimental evidence that adding social policy content to a policy message pushes those disagreeing with the social policy to disagree also with the economic content of the message. As my results suggest regular deviations from Bayesian explanations, I propose a model of identity-based belief updating that predicts the main regularities found in the experiment. Finally, I shed light on opinion leaders' incentives to strengthen the association between social policy and economic policy views.

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