Aizenman, Joshua; Yi, Sang-Seung - In: Journal of Economic Policy Reform 2 (1998) 3, pp. 269-280
This paper offers an explanation of policy reforms undertaken in times of an economic crisis. Our explanation does not … uncertain reform outcome is worse than the status quo. We show that an economic crisis which reduces the status-quo income makes … the regret-experiencing decision maker more eager to undertake reforms in times of an economic crisis, despite the higher …