A Theory of Policy Reversal

Arbeitspapier

After decades of government growth, Western countries have witnessed major policy reversals. Prominent examples include the far-reaching policy reversals implemented by Thatcher, Reagan, and Douglas. This paper offers an explanation for these policy reversals. Our key argument rests on the assumptions that public decisions are made by majority rule and that voters have incomplete information about the aggregate consequences of all possible bundles of public projects making up the government. Unlike existing explanations, our theoryis consistent with the observations that policy reversals are often undertaken simultaneously and that separate parts of the package of policy reversals are not welcomed enthusiastically by voters.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 97-079/1

Classification and Topics

• Classification: Wirtschaft ; Positive Analysis of Policy Formulation and Implementation ; National Government Expenditures and Related Policies: General
• Subject: Policy reversal ; Majority voting ; Size of the government ; Deregulierung ; Haushaltskonsolidierung ; Staatsquote ; Abstimmungsregel ; Neue politische Ökonomie ; Unvollkommene Information ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dur, Robert A.J. ; Swank, Otto H.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 1997

Further information

• Handle: http://hdl.handle.net/10419/85750
• Last update: 10.03.2025, 11:44 AM CET