Policy feedback via economic behavior: A model and experimental analysis of consumption behavior

Abstract

This article examines policy feedback via economic behavior in the mass public, with a focus on consumption behavior. Do public policies affect the consumption behavior of mass publics and subsequent policymaking processes and outcomes? If so, how? I introduce a policy feedback model of consumption behavior in the mass public. Within this model, I advance a theoretical argument on the consequences of targeted cash assistance policies (TCAPs) for consumer spending behavior and government provision of basic utilities in developing countries. Using a randomized field experiment in Mexico and pre–post analysis, I find that TCAPs boost consumer spending on private access to basic utilities in the short term and reduce government provision of basic utilities in the medium term. The study pushes policy feedback theorists to think beyond the arena of mass politics, and the findings have important implications for social policy and human development in developing countries.

Editorial introduction: Exploring the frontier of policy theory research

“…Despite its importance, the political consequences of preemption have not been fully explored. In the second article “The policy feedback effects of preemption,” SoRelle and Fullerton (2024) use the policy feedback theory (Jacobs et al., 2022; Schober, 2023) to analyze these consequences, explaining how federal‐state and state‐local preemption can have distinct effects that influence the political actions of policymakers, organized interests, and the public. This article fills a gap in the preemption literature and extends policy feedback theory, suggesting a research direction to better understand the politics of this commonly used policy tool.…”

Editorial introduction: Exploring theories and subtleties of the policy process

“…Lastly, in his article “Policy Feedback via Economic Behavior: A Model and Experimental Analysis of Consumption Behavior,” Schober (2023) introduces a policy feedback model of consumption behavior and presents a theoretical argument on the consequences of targeted cash assistance policies (TCAPs) for consumer spending behavior and government provision of basic utilities in developing countries. Using a randomized field experiment in Mexico and pre–post analysis, the study finds that TCAPs increase consumer spending on private access to basic utilities in the short term and reduce government provision of basic utilities in the medium term.…”