Public satisfaction with democracy: the role of the economy and political institutions

Abstract This study examines the relationship between economic performance and citizens’ satisfaction with democracy (SWD), emphasizing the moderating role of clarity of responsibility (CoR)—the extent to which political institutions enable voters to identify who is accountable for policy outcomes. While prior research offers mixed empirical evidence on the economic determinants of SWD, we argue that this inconsistency can be explained by variation in institutional clarity. Drawing on insights from the economic voting literature, we develop a theoretical framework positing that the economy has a stronger impact on democratic satisfaction in contexts where responsibility is clearly assigned. Using cross-national data from 30 democracies over three decades, and a refined measure of CoR, we find that economic effects on SWD are significantly amplified in high-clarity systems. These findings highlight the importance of institutional context in shaping how citizens evaluate the functioning of democratic governance.