When Does the Public Get It Right? The Information Environment and the Accuracy of Economic Sentiment

Public evaluations of the economy are key for understanding how citizens develop policy opinions and monitor government performance. But what drives economic evaluations? In this article, we argue context in which information about is distributed shapes perceptions. high-quality environments—where policies transparent, media free, political opposition robust—mass perceptions closely track conditions. contrast, compromised environments provide openings manipulation, leading to deviate from business cycle fluctuations. We test our argument with unique data eight Latin American countries. Results show restrictions on access distort public’s view The ability voters sanction governments stronger when democratic institutions protect citizens’ independent, unbiased information. Our findings highlight importance accurate accountability responsiveness.