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A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic

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Author Info
John S. Earle (Central European University)
Scott Gehlbach (University of California--Berkeley, and CEFIR, Moscow)

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Abstract

We analyze the role of privatization in creating a constituency for economic reform, markets, and democratic institutions, focusing on the Czech Republic. Drawing on a 1996 survey, we examine the 1,459 respondents" opinions on reforms, economic policies and systems, the legitimacy of transition, and democratic values. Using ordered probit estimation, we find that receiving property through restitution is strongly associated with support for reform and markets. Concerning voucher privatization, we find positive effects for participants retaining shares, but little impact of participation alone. Our simulations suggest that policy designs have substantial consequences for citizens" support of reforms, markets, and democracy. Copyright 2003 Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Economics and Politics.

Volume (Year): 15 (2003)
Issue (Month): 1 (March)
Pages: 1-32
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Handle: RePEc:bla:ecopol:v:15:y:2003:i:1:p:1-32

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Schmidt, Klaus M., 1997. "The Political Economy of Mass Privatization and the Risk of Expropriation," CEPR Discussion Papers 1542, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Stijn Claessens & Simeon Djankov, 1999. "Ownership Concentration and Corporate Performance in the Czech Republic," William Davidson Institute Working Papers Series 227, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  3. Harper, Joel T., 2002. "The performance of privatized firms in the Czech Republic," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 621-649, April. [Downloadable!] (restricted)
  4. Anders Åslund & Peter Boone & Simon Johnson, 1996. "How to Stabilize: Lessons from Post -communist Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1996-1), pages 217-314. [Downloadable!]
  5. Rodrik, Dani, 1995. "The Dynamics of Political Support for Reform in Economies in Transition," CEPR Discussion Papers 1115, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Robert J. Shiller & Maxim Boycko & Vladimir Korobov, 1992. "Hunting for Homo Sovieticus: Situational versus Attitudinal Factors in Economic Behavior," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 127-194. [Downloadable!]
  7. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-55, December. [Downloadable!] (restricted)
  8. Cesar Martinelli & Mariano Tommasi, 1993. "Sequencing of Economic Reforms in the Presence of Political Constraints," UCLA Economics Working Papers 701, UCLA Department of Economics. [Downloadable!]
  9. Vickers, John & Yarrow, George, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-32, Spring. [Downloadable!] (restricted)
  10. P. Lian & S.-J. Wei, 1998. "To Shock or Not to Shock? Economics and Political Economy of Large-Scale Reforms," Economics and Politics, Blackwell Publishing, vol. 10(2), pages 161-183, 07. [Downloadable!] (restricted)
  11. Aghion, P. & Blanchard, O.J., 1993. "On the Speed of Transition in Central Europe," Working papers 93-8, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Doyle, Orla & Fidrmuc, Jan, 2003. "Anatomy of Voting Behaviour and Attitudes During Post-Communist Transition Czech Republic 1990-98," CEPR Discussion Papers 3801, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Alberto Chong & Florencio Lopez-de-Silanes, 2003. "The Truth About Privatization in Latin America," RES Working Papers 3180, Inter-American Development Bank, Research Department. [Downloadable!]
    Other versions:
  3. Alberto Chong & Florencio Lopez-de-Silanes, 2004. "Privatization in Mexico," RES Working Papers 4373, Inter-American Development Bank, Research Department. [Downloadable!]
    Other versions:
  4. Ingrid Nielsen & Chris Nyland & Russell Smyth & Cherrie Jiuhua Zhu, 2005. "Perceptions of Subjective Economic Well-Being and Support for Market Reform among China's Urban Population," Post-Communist Economies, Taylor and Francis Journals, vol. 17(4), pages 425-447, December. [Downloadable!] (restricted)
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