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A Theory of Policy Reversal

Author

Listed:
  • Robert A.J. Dur

    (Erasmus University Rotterdam)

  • Otto H. Swank

    (Erasmus University Rotterdam)

Abstract

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.

Suggested Citation

  • Robert A.J. Dur & Otto H. Swank, 1997. "A Theory of Policy Reversal," Tinbergen Institute Discussion Papers 97-079/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19970079
    as

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    File URL: https://papers.tinbergen.nl/97079.pdf
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    References listed on IDEAS

    as
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    4. Peltzman, Sam, 1980. "The Growth of Government," Working Papers 1, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
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    9. Robert A.J. Dur & Otto H. Swank, 1997. "On the Role of the Governmental Agreement in Breaking Political Deadlocks," Tinbergen Institute Discussion Papers 97-023/1, Tinbergen Institute.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Policy reversal; Majority voting; Size of the government;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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