Audience costs, domestic economy and coercive diplomacy

Abstract

Does the state of the domestic economy change the size of the effect of audience costs? As public opinion research has shown, citizens assess the performance of their leaders based not only on foreign policy, but also on the domestic economy. Thus, if leaders are subject to audience costs, they should be even less able to afford failure in an international crisis when the economy is performing badly than when the economy is doing well. As a result, such leaders should be even more able to make their threats credible and, therefore, are more likely to be successful in coercive diplomacy. This novel prediction finds no empirical support in a replication study using Moon and Souva (2016). I discuss possible reasons for this result and avenues for further research.