Ratchet effect

Christopher J. Coyne, Abigail R. Hall and Matthew A. Owens

Chapter 98 in Elgar Encyclopedia of Public Choice, 2025, pp 703-708 from Edward Elgar Publishing

Abstract: The ratchet effect is one theory of government growth. The underlying logic is as follows. During a crisis, both the magnitude (or “scale”) and the range (or “scope”) of government activities grow, relative to before the crisis. After the crisis subsides, some government policies and activities recede, but the overall size of government does not return to its pre-crisis size. This entry presents the ratchet effect framework, discusses historical examples, and reviews extensions in the academic literature.

Keywords: Crisis; Government growth; Ideology; Ratchet effect (search for similar items in EconPapers)
Date: 2025
ISBN: 9781802207743
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