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Economic theories of voting argue that party popularity and vote are heavily influenced by the performance of the economy. Inferences about the direction of causality between perceptions of the economy and party support remain questionable, however. This article evaluates the microfoundations of economic theories of voting and party popularity using multiwave panel data. We model the dynamic relationships between party support and retrospective economic perceptions—both sociotropic and egocentric—through the 1992–97 British electoral cycle. Our findings indicate that sociotropic perceptions are strongly conditioned by prior opinions of the incumbent Conservative Party and once this temporal relationship is taken into account, they have little affect on incumbent party popularity. Throughout the electoral cycle, lagged political support has a substantially stronger effect on sociotropic perceptions than the latter have on concurrent party support. Moreover, egocentric perceptions appear to be neither strongly affected nor influenced by party support. The findings of these dynamic individual-level analyses indicate that conventional wisdom is likely to considerably overstate the importance of retrospective economic considerations for political preferences.