Assessing disproportionality: indexes of policy responses to the 2007–8 banking crisis

Fabrizio De Francesco, Martino Maggetti

Research output: Contribution to journalArticle

Abstract

Contemporary theories of the policy process typically assume that policy responses tend to go through long periods of stasis alternated with occasional bursts of intense activity. The concept of policy punctuations has been put forward to denote large-scale changes in public policies that take place in crisis moments. However, research on the dynamics of policy overreaction and underreaction is still in its infancy. It has mostly focused on either small-n cross-sectional analysis of government spending or case studies of single events. A comparative assessment of the extent of disproportionate responses in a crisis is still lacking. To fill this gap, in this paper we develop a framework to conceptualize, operationalize and ultimately assess disproportionate policy responses systematically from a cross-sectional perspective. We create a series of indexes to measure policy over- and underreactions among the EU member states that experienced the 2007–8 banking crisis. We found that a large majority of EU countries overreacted through public liability guarantee and budget commitment. On the other hand, regulatory responses are characterized by a greater variation.
LanguageEnglish
Pages17-38
Number of pages22
JournalPolicy Sciences
Volume51
Issue number1
Early online date28 Nov 2017
DOIs
Publication statusPublished - 31 Mar 2018

Fingerprint

banking
Ministry of State Security (GDR)
EU member state
liability
guarantee
budget
public policy
EU
commitment
event
policy
index
Banking crisis
Underreaction
Overreaction
Policy responses
Policy process
Long period
Policy measures
Guarantee

Keywords

  • policy change
  • policy underreaction
  • policy overreaction
  • banking crisis
  • European states

Cite this

@article{c2ea2313d01749be9abc18ea2d098413,
title = "Assessing disproportionality: indexes of policy responses to the 2007–8 banking crisis",
abstract = "Contemporary theories of the policy process typically assume that policy responses tend to go through long periods of stasis alternated with occasional bursts of intense activity. The concept of policy punctuations has been put forward to denote large-scale changes in public policies that take place in crisis moments. However, research on the dynamics of policy overreaction and underreaction is still in its infancy. It has mostly focused on either small-n cross-sectional analysis of government spending or case studies of single events. A comparative assessment of the extent of disproportionate responses in a crisis is still lacking. To fill this gap, in this paper we develop a framework to conceptualize, operationalize and ultimately assess disproportionate policy responses systematically from a cross-sectional perspective. We create a series of indexes to measure policy over- and underreactions among the EU member states that experienced the 2007–8 banking crisis. We found that a large majority of EU countries overreacted through public liability guarantee and budget commitment. On the other hand, regulatory responses are characterized by a greater variation.",
keywords = "policy change, policy underreaction , policy overreaction, banking crisis, European states",
author = "{De Francesco}, Fabrizio and Martino Maggetti",
year = "2018",
month = "3",
day = "31",
doi = "10.1007/s11077-017-9309-x",
language = "English",
volume = "51",
pages = "17--38",
journal = "Policy Sciences",
issn = "0032-2687",
number = "1",

}

Assessing disproportionality : indexes of policy responses to the 2007–8 banking crisis. / De Francesco, Fabrizio; Maggetti, Martino.

In: Policy Sciences, Vol. 51, No. 1, 31.03.2018, p. 17-38.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Assessing disproportionality

T2 - Policy Sciences

AU - De Francesco, Fabrizio

AU - Maggetti, Martino

PY - 2018/3/31

Y1 - 2018/3/31

N2 - Contemporary theories of the policy process typically assume that policy responses tend to go through long periods of stasis alternated with occasional bursts of intense activity. The concept of policy punctuations has been put forward to denote large-scale changes in public policies that take place in crisis moments. However, research on the dynamics of policy overreaction and underreaction is still in its infancy. It has mostly focused on either small-n cross-sectional analysis of government spending or case studies of single events. A comparative assessment of the extent of disproportionate responses in a crisis is still lacking. To fill this gap, in this paper we develop a framework to conceptualize, operationalize and ultimately assess disproportionate policy responses systematically from a cross-sectional perspective. We create a series of indexes to measure policy over- and underreactions among the EU member states that experienced the 2007–8 banking crisis. We found that a large majority of EU countries overreacted through public liability guarantee and budget commitment. On the other hand, regulatory responses are characterized by a greater variation.

AB - Contemporary theories of the policy process typically assume that policy responses tend to go through long periods of stasis alternated with occasional bursts of intense activity. The concept of policy punctuations has been put forward to denote large-scale changes in public policies that take place in crisis moments. However, research on the dynamics of policy overreaction and underreaction is still in its infancy. It has mostly focused on either small-n cross-sectional analysis of government spending or case studies of single events. A comparative assessment of the extent of disproportionate responses in a crisis is still lacking. To fill this gap, in this paper we develop a framework to conceptualize, operationalize and ultimately assess disproportionate policy responses systematically from a cross-sectional perspective. We create a series of indexes to measure policy over- and underreactions among the EU member states that experienced the 2007–8 banking crisis. We found that a large majority of EU countries overreacted through public liability guarantee and budget commitment. On the other hand, regulatory responses are characterized by a greater variation.

KW - policy change

KW - policy underreaction

KW - policy overreaction

KW - banking crisis

KW - European states

UR - https://link.springer.com/journal/11077

U2 - 10.1007/s11077-017-9309-x

DO - 10.1007/s11077-017-9309-x

M3 - Article

VL - 51

SP - 17

EP - 38

JO - Policy Sciences

JF - Policy Sciences

SN - 0032-2687

IS - 1

ER -