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Bailout or bust? Government evaluations in the wake of a bailout

  • Erik Gahner Larsen (a1), Robert Klemmensen (a2) and Michael Baggesen Klitgaard (a2)

Abstract

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.

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References

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European Political Science Review
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