Economic beliefs and support for public policy

This thesis contributes to the literature on economic beliefs and support for public policy in two parts. The first part of the thesis examines the relationship between individual beliefs about the macroeconomic outlook, framing of economic information by the media, and public support for policies in the context of the COVID-19 pandemic. The second part of the thesis concentrates on the interplay between beliefs about immigrants, the provision of statistical information about the immigrant population, and attitudes towards immigration as well as policy preferences in the host society. The findings of the first part of this thesis show that media and news outlets are of high relevance for the dissemination of economic information to consumers in times of crisis. In particular, the results show that framing of economic information by news outlets affects the public’s support for policy in the context of the COVID-19 pandemic. The results of the second part of the thesis reveal that biases in beliefs about the immigrant population are very prevalent in host societies. More specifically, it provides evidence that many individuals tend to overestimate key aggregate statistics on immigration such as the share and unemployment rate of immigrants. While providing the public with official statistical information about the immigrant population reduces economic concerns about immigration and increases support for further immigration to the country, the findings also highlight that such information campaigns have to be carefully designed in order to remain effective.

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