ABSTRACT
Punctuated-equilibrium theory seeks to explain a simple observation: political processes are generally characterized by stability and incrementalism, but occasionally they produce large-scale departures. Punctuated-equilibrium theory extends these observations by placing the policy process on a dual foundation of political institutions and boundedly rational decisionmaking. It emphasizes two related elements of the policy process: issue definition and agenda setting. The chapter examines punctuated-equilibrium theory and its foundations in the longitudinal study of political institutions and in political decisionmaking. It provides the punctuated-equilibrium theory to national budgeting and provide some recent evidence of punctuations and equilibria in US national government spending since World War II. The chapter shows how the theory has been generalized, including extensions to policymaking in US state and local governments as well as European national governments. It concludes with an assessment of the strengths and weaknesses of this approach to understanding public policymaking.
