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What you believe depends on where you stand, apparently.

Or, talking your book on surveys. 

Political Polarization and Expected Economic Outcomes by Olivier Coibion, Yuriy Gorodnichenko, and Michael Weber is a fascinating working paper on the election. 

…despite wanting different things, voters should be able to broadly agree on the likelihood of different electoral outcomes..


87% of Democrats expect Biden to win while 84% of Republicans expect Trump to win. Importantly, this stark disagreement does not reflect two sets of partisan voters each foreseeing a close election that just barely breaks their way. Among Republicans, the average probability they assign to Trump winning is 76%, with more than one in five saying that Trump will win with 100% probability. Among Democrats, the average probability assigned to Biden winning is 74%, with almost 15% of them saying that Biden will win with 100% probability. 

Less surprising:

Republicans expect a fairly rosy economic scenario if Trump is elected but a very dire one if Biden wins. Democrats … expect calamity if Trump is re- elected but an economic boom if Biden wins. 

Perhaps of course that economic forecast is why each group votes the way they do, and the conditional distribution should go the other ways — given which president you think will be a calamity, you vote for the other one. 

Normally I am a bit skeptical about surveys — they measure what people respond on surveys. Surely people don’t mean 100% chance of my candidate wining in the same way they assess the probability of the car breaking down on the way to work. But here measuring what people respond on surveys is quite interesting! If people respond 100% chance of their candidate winning, the same people’s response that 100% chance of the stocks they bought going up makes more sense. We learn what “likely” means in casual conversation, compared to “true-measure conditional probability.” 

So, I can forecast with 100% probability, the libertarian revolution is coming in 2024! 

John H. Cochrane 2020-10-29 01:31:00

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