This paper documents a significant association between the exposure of an individual or area to the UK government’s austerity-induced welfare reforms begun in 2010, and the following: the subsequent rise in support for the UK Independence Party, an important correlate of Leave support in the 2016 UK referendum on European Union membership; broader individual-level measures of political dissatisfaction; and direct measures of support for Leave. Leveraging data from all UK electoral contests since 2000, along with detailed, individual-level panel data, the findings suggest that the EU referendum could have resulted in a Remain victory had it not been for austerity.

Can revenue sharing of resource rents be a source of distributive conflict? Can cohesive institutions avoid such conflicts? We exploit exogenous variation in local government revenues and new data on local democratic institutions in Nigeria to study these questions. We find a strong link between rents and conflict. Conflicts are highly organized and concentrated in districts and time periods with unelected local governments. Once local governments are elected these relationships are much weaker. We argue that elections produce more cohesive institutions that help limit distributional conflict between groups. Throughout, we confirm these findings using individual level survey data.

This paper estimates the size of the media multiplier, an easily generalizable model-based measure of how far media coverage magnifies the economic response to shocks. We combine monthly aggregated and anonymized credit card activity data from 114 card-issuing countries in 5 destination countries with a large corpus of news coverage in issuing countries reporting on violent events in the destinations. To define and quantify the media multiplier, we estimate a model in which latent beliefs, shaped by either events or news coverage, drive card activity. According to the model, media coverage can more than triple the economic impact of an event. We document, through our model, that this effect is highly heterogeneous and depends on the broader media representation of countries in each other’s news. We speculate about the role of the media in driving international travel patterns.

We provide experimental evidence that using body-worn cameras (BWCs) for police monitoring improves police-citizen interactions. In an intervention carried out in Brazil in 2018, we find that treated incidents show a 61.2% decrease in police use of force and a 47.0% reduction in adverse interactions, including handcuff use and arrests. The use of body-worn cameras also significantly improves the quality of police reporting. The rate of incomplete reports dropped by 5.9%, which is accompanied by a 69.2% increase in reported incidents of domestic violence. We explore various mechanisms that explain why BWCs work and show that the results are consistent with the police changing their behavior in the presence of cameras. Overall, results show that the use of body-worn cameras de-escalates conflicts.

How do foreign powers disengage from a conflict? We study this issue by examining the recent, large-scale security transition from international troops to local forces in the ongoing civil conflict in Afghanistan. We construct a new dataset that combines information on this transition process with declassified conflict outcomes and previously unreleased quarterly survey data of residents’ perceptions of local security. Our empirical design leverages the staggered roll-out of the transition, and employs a novel instrumental variables approach to estimate the impact. We find a significant, sharp, and timely decline of insurgent violence in the initial phase: the security transfer to Afghan forces. We find that this is followed by a significant surge in violence in the second phase: the actual physical withdrawal of foreign troops. We argue that this pattern is consistent with a signaling model, in which the insurgents reduce violence strategically to facilitate the foreign military withdrawal to capitalize on the reduced foreign military presence afterward. Our findings clarify the destabilizing consequences of withdrawal in one of the costliest conflicts in modern history, and yield potentially actionable insights for designing future security transitions.

We provide one of the first systematic assessments of the development and determinants of economic anxiety at the onset of the coronavirus pandemic. Using a global data set on internet searches and two representative surveys from the United States, we document a substantial increase in economic anxiety during and after the arrival of the coronavirus. We also document a large dispersion in beliefs about the pandemic risk factors of the coronavirus and demonstrate that these beliefs causally affect individuals' economic anxieties. Finally, we show that individuals' mental models of infectious disease spread understate nonlinear growth and shape the extent of economic anxiety.