economicand political shocks, and how these responses shape political attitudes, economicbehavior, and democratic legitimacy. Situated at the intersection of political economyand public economics, the chapters examine how public policies, violent events, andstructural economic conditions influence individual beliefs, preferences, and choices inthe United States and Germany. Across four empirical studies, the dissertation combinesquasi-experimental designs, rich survey and processed administrative data, andnovel measurement approaches to analyze how democratic citizens interpret state interventions,assess economic risks and opportunities, and form political attitudes intimes of heightened uncertainty. A unifying theme is that political and economic behavioris shaped not only by material incentives, but also by beliefs, emotions, andnarratives that mediate how individuals experience and respond to institutional andsocietal change. Taken together, these chapters offer new evidence on the micro-levelfoundations of political and economic behavior in advanced democracies.