Individuals, Institutions, and Public Preferences over Public Finance

Abstract

This study examines public preferences over deficits, taxes, and spending. Using responses to public opinion questions designed for the purpose, the article assesses the state of preferences as expressed by individuals and as represented in government. One section examines the characteristics of individual preferences—their completeness, consistency, and coherence. Public opinion is remarkably well structured and overwhelmingly partial to the policy status quo. A second section explores the properties of mass preferences as they are aggregated by several different kinds of institutional voting rules. Institutions matter, at least to a point: Consistent institutional differences over federal budget policy trace directly to the diverse means by which institutions represent the public's positions. The conclusion assesses the meaning and import of the public's resistance to budget policy change.