Abstract
The last decade has witnessed the rise of populist parties and a number of actors that question liberal democracy. Many explanations of this rely on dissatisfied citizens. We ask in this article whether and how institutions allowing citizens to participate in policy-making affect differences in democratic satisfaction within varying representative contexts as well as between electoral winners and losers. To do so, we first develop a measure of sub-national direct democracy and then use it together with extensive survey data to investigate how direct democracy is associated with citizens’ evaluation of their democratic system. We conclude that direct democracy is not generally related to more satisfied people but rather closes the “satisfaction-gap” between electoral winners and losers. In contrast to previous research, we demonstrate that this mechanism holds across different representative systems.