The electoral risks of austerity

Does austerity influence incumbent support? Existing studies struggle with conceptualizing the evolution of austerity's impact over time, estimating a causal effect, and analysing the reactions of different voters. This study theorizes that the effect of austerity on electoral preferences is not immediate, but gradual, as voters find out about the measures' consequences via the media. It leverages a survey in the field at the time of the austerity announcement in Romania in 2010, additional survey data collected immediately after this event and comprehensive daily media coverage to show that austerity measures do not have an immediate impact on incumbent support, anticipated turnout and expressing a vote preference. Instead, there is a gradual effect that is associated with increased media attention to budgetary cuts. This natural experiment allows the estimation of the immediate causal effect of austerity on electoral intentions. Difference-in-differences (DID) models show that the announcement triggered a massive loss of support for the incumbent among those who had voted for the party in power only a few months before. Austerity also led to the demobilization of the governing party's supporters. There is no evidence that those most directly affected by the spending cuts are more likely to punish the incumbent party.