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government behavior

European Political Science Review (1)

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Bailout or bust? Government evaluations in the wake of a bailout
Erik Gahner Larsen, Robert Klemmensen, Michael Baggesen Klitgaard
Journal:

European Political Science Review / Volume 11 / Issue 2 / May 2019

Published online by Cambridge University Press:

30 May 2019, pp. 231-246
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Governments are often punished for negative events such as economic downturns and financial shocks. However, governments can address such shocks with salient policy responses that might mitigate public punishment. We use three high-quality nationally representative surveys collected around a key event in the history of the Dutch economy, namely the outbreak of the financial crisis in 2008, to examine how voters responded to a salient government bailout. The results illustrate that governments can get substantial credit for pursuing a bailout in the midst of a financial crisis. Future research should take salient policy responses into account to fully understand the public response to the outbreak of financial and economic crises.