Policy Bubbles: Policy Overreaction and Positive Feedback

Moshe Maor*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

69 Scopus citations

Abstract

Drawing on insights from economics, psychology, sociology, political science, and policy sciences, this article proposes a definition and measurement strategies for policy bubbles. A policy bubble is a real and/or perceived policy overreaction that is reinforced by positive feedback over an extended period of time. Positive feedback is here integrated in a model of human herding as the key factor that propels this process but also as a key generator of change. The process is conceptualized in terms of the formation, growth, and burst of policy bubbles. This causal-explanatory understanding of the term allows for the possibility that different modes of policy overreaction lead to different types of human herding, thereby resulting in different types of policy bubbles.

Original languageEnglish
Pages (from-to)469-487
Number of pages19
JournalGovernance
Volume27
Issue number3
DOIs
StatePublished - 2014

Bibliographical note

Publisher Copyright:
© 2013 Wiley Periodicals, Inc.

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