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- W3121392783 abstract "Abstract This paper uses hysteresis to develop the concept of policy lock-in and lock-out. Policy changes may near-irrevocably change the economy’s structure, thereby changing the distribution of wealth, income and power. That may lock-in policy by changing the political equilibrium. Exit costs that block policy reversals also cause lock-in. Conventional thinking treats policy as a dial which is adjusted according to the economy’s state. Policy lock-in questions the dial formulation and raises new issues for optimal policy design. It also offers insights into economic and political crisis theory. Policy lock-in is illustrated with examples that include tax policy, government spending, the euro, globalization, and the neoliberal policy experiment." @default.
- W3121392783 created "2021-02-01" @default.
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- W3121392783 date "2017-07-04" @default.
- W3121392783 modified "2023-10-14" @default.
- W3121392783 title "A theory of economic policy lock-in and lock-out via hysteresis: rethinking economists’ approach to economic policy" @default.
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- W3121392783 doi "https://doi.org/10.5018/economics-ejournal.ja.2017-18" @default.
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