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Quality & Quantity

, Volume 53, Issue 3, pp 1479–1493 | Cite as

Crisis? What crisis? Measuring economic crisis in political science

  • Suthan KrishnarajanEmail author
Article
  • 107 Downloads

Abstract

An influential body of scholarship in political science has investigated the impact of economic crisis on various political outcomes. The vast majority of these studies rely on annual growth rates (AGR) to specify economic crisis. I argue that this canonical approach comes with several logical shortcomings. It leads to misguided impressions of crisis severity; it makes no distinction between rapid expansion years and rapid recovery years; and it disregards the financial dimension of economic crises. I present and discuss three alternative approaches of measuring economic crisis, imported from economics: economic shocks, economic slumps, and measures of financial crises. Examples from the regime instability literature demonstrate that these alternative crisis measurements provide results that are theoretically more nuanced and empirically more robust. On this basis, the article encourages researchers to pay more attention to the way they measure economic crisis in general and to supplement the AGR approach with alternative crisis measures in particular.

Keywords

Economic crisis Measurement Annual growth rates 

Supplementary material

11135_2018_823_MOESM1_ESM.docx (57 kb)
Supplementary material 1 (DOCX 57 kb)

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Copyright information

© Springer Nature B.V. 2018

Authors and Affiliations

  1. 1.Department of Political ScienceAarhus UniversityAarhusDenmark

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