(Can't get no) Satisfaction through Direct Democracy?

Does direct democracy increase citizens’ satisfaction with democracy? Disillusionment with representative politics is frequently cited as key reason for the popularity of direct democracy. Conversely, one may think that the holding of referendums, often regarded as the most authoritative expression of ‘the’ popular will, should increase popular support for the political system because they give citizens participatory opportunities and promise to offer citizens more control over policy. However, direct democracy might on the contrary lead to traditional institutions and actors of democratic politics to be looked upon even less favourably, particularly if exploited by populists. Hence, direct democracy might also further erode people’s satisfaction with the way their democracy works. Combining aggregate data on satisfaction with democracy from bi-annual Eurobarometer surveys from 1973 to 2002 with data on all national referendums in the same period, I test whether referendums increase citizen’s satisfaction with democracy.