New publication: Can autocrats buy popularity with cash?

A new paper by Diana Zarbailova (Institute of Economics, TU Braunschweig) and Nikita Zakharov (University of Freiburg) has been published in The Journal of Law, Economics, and Organization.

The study examines whether autocratic governments can increase their popularity through cash transfers. In 2020, the COVID-19 pandemic led Russia to postpone the national referendum that allowed President Putin to stay in office, and the government introduced unconditional cash transfers to families with children. Using a difference-in-differences design, the authors compare the political attitudes of recipients and similar non-recipients before and after the payments.

The results show that the transfers substantially increased approval of Putin and support for extending his presidential terms. The effect was short-lived and faded within about four months. A comparison with the 2018 election shows that pro-family rhetoric alone, without cash, did not generate comparable support. The findings suggest that autocrats can use transfers to gain a temporary boost in legitimacy, but not lasting loyalty.