{
  "title": "Aggregate Shocks and the Formation of Preferences and Beliefs",
  "publication": "IMF Working Papers, September 13, 2024",
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  "summary": "A growing body of work has shown that aggregate shocks affect the formation of preferences and beliefs. This article reviews evidence from sociology, social psychology, and economics to assess the relevance of aggregate shocks, whether the period in which they are experienced matters, and whether th",
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    {
      "heading": "Scope and approach",
      "content": "- Reviews evidence from sociology, social psychology, and economics on how aggregate shocks affect formation of preferences and beliefs.\n- Examines whether the period in which shocks are experienced matters and whether shocks alter preferences and beliefs permanently.\n- Surveys literature on:\n  - recessions,\n  - inflation experiences,\n  - trade shocks,\n  - aggregate non-economic shocks including migrations, wars, terrorist attacks, pandemics, and natural disasters.\n- For each aggregate shock, discusses:\n  - main empirical methodologies,\n  - limitations of those methodologies,\n  - comparability across studies,\n  - possible mechanisms when available."
    },
    {
      "heading": "Key empirical findings",
      "content": "- Aggregate shocks impact many preferences and beliefs, including:\n  - political preferences,\n  - risk attitudes,\n  - trust in institutions.\n- Timing matters:\n  - The effect of shocks experienced during young adulthood is stronger and longer lasting.\n- Directional patterns by shock type:\n  - Negative aggregate economic shocks generally move preferences and beliefs to the right of the political spectrum.\n  - Effects of non-economic adverse shocks are more heterogeneous and depend on the context."
    },
    {
      "heading": "Methodological considerations",
      "content": "- The review highlights differences in empirical methodologies across studies and notes their limitations.\n- Comparability across studies is discussed, with mechanisms outlined whenever available.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/09/13/aggregate-shocks-and-the-formation-of-preferences-and-beliefs-554823"
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    "Authors: Paola Giuliano, Antonio Spilimbergo",
    "Published: September 13, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400288654.001",
    "Reviews evidence from sociology, social psychology, and economics on how aggregate shocks affect formation of preferences and beliefs.",
    "Examines whether the period in which shocks are experienced matters and whether shocks alter preferences and beliefs permanently.",
    "Surveys literature on:",
    "For each aggregate shock, discusses:",
    "Aggregate shocks impact many preferences and beliefs, including:",
    "Timing matters:",
    "Directional patterns by shock type:",
    "The review highlights differences in empirical methodologies across studies and notes their limitations.",
    "Comparability across studies is discussed, with mechanisms outlined whenever available.",
    "**Working Paper**"
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