ABSTRACT
This chapter contributes to such a theory by examining understanding of the relationships in Great Britain during Margaret Thatcher's first two governments. Empirically, evidence of the importance of subjective economic evaluations in time series models of political support is sparse but, recently, findings have begun to cumulate. Using data on government popularity in Britain, Sanders, Ward, and Marsh demonstrate that economic perceptions and expectations have powerful effects on governing party support. The evidence presented indicates that governing parties enjoy inherent advantages in this enterprise and can be quite successful in their efforts to put a positive spin on economic news. Public evaluations of the economy may be distorted in another way. Underlying the widespread use of objective indicators in political support models is an assumption, usually implicit, that economic conditions are widely and correctly perceived by the public.
