Explaining the Financial Crisis. Public Policy Theories in Comparison
(Prof. Uwe Wagschal, with Daniel Heltzel and Tim Jäkel)
There has been a strong growth of theories explaining Public Policies. The paper aims to give an overview about these developments. Furthermore these theories will be applied in explaining the policy-responses to the financial and economic crisis in the OECD since 2008. As a second step, we compare the size and distribution as well as the composition of fiscal packages in 28 OECD-countries. The paper then moves on to examine the consequences of the financial packages for budget consolidation. The fourth part of the paper uses multivariate analysis to identify the determinants of the size of fiscal packages. On the basis of the empirical analysis we want to judge which theories of Public Policy can attribute most to the explanation of the determinants of the financial crisis.