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Democracy, Market Liberalization, and Political Preferences

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  • Pauline Grosjean

    (University of San Francisco)

  • Claudia Senik

    (Paris School of Economics and University Paris-Sorbonne)

Abstract

We estimate the impact of market development and democratization on subjective political preferences. We rely on the specific situation of frontier zones and the considerable regional variations in culture and economic development in the countries of the former socialist bloc for identification. Using a survey conducted in 2006, we find a positive and significant effect of democracy on support for a market economy, but no effect of market liberalization on support for democracy. Hence, in contrast with the conventional wisdom concerning the sequencing of political and economic reforms, democratization may become a necessary condition to obtain public support for further economic liberalization. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 93 (2011)
Issue (Month): 1 (February)
Pages: 365-381

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Handle: RePEc:tpr:restat:v:93:y:2011:i:1:p:365-381

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Cited by:
  1. Grosfeld, Irena & Rodnyansky, Alexander & Zhuravskaya, Ekaterina, 2011. "Persistent anti-market culture: A legacy of the Pale of Settlement and of the Holocaust," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8316, C.E.P.R. Discussion Papers.
  2. Pauline Grosjean, 2013. "Conflict and Social and Political Preferences: Evidence from World War II and Civil Conflict in 35 European countries," Discussion Papers, School of Economics, The University of New South Wales 2013-29, School of Economics, The University of New South Wales.
  3. Becker, Sascha O. & Boeckh, Katrin & Hainz, Christa & Woessmann, Ludger, 2011. "The Empire Is Dead, Long Live the Empire! Long-Run Persistence of Trust and Corruption in the Bureaucracy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8288, C.E.P.R. Discussion Papers.
  4. Paola Giuliano & Prachi Mishra & Antonio Spilimbergo, 2013. "Democracy and Reforms: Evidence from a New Dataset," American Economic Journal: Macroeconomics, American Economic Association, American Economic Association, vol. 5(4), pages 179-204, October.
  5. Friedrichsen, Jana & Zahn, Philipp, 2013. "Political support in hard times: Do people care about national welfare?," Discussion Papers, Research Unit: Market Behavior, Social Science Research Center Berlin (WZB) SP II 2013-212, Social Science Research Center Berlin (WZB).
  6. repec:hal:wpaper:halshs-00564927 is not listed on IDEAS
  7. Martin Mendelski & Alexander Libman, 2014. "Demand for litigation in the absence of traditions of rule of law: an example of Ottoman and Habsburg legacies in Romania," Constitutional Political Economy, Springer, Springer, vol. 25(2), pages 177-206, June.
  8. Fabrice Murtin & Romain Wacziarg, 2011. "The Democratic Transition," NBER Working Papers 17432, National Bureau of Economic Research, Inc.
  9. Ziebarth, Nicolas R. & Wagner, Gert G., 2013. "Top‐Down vs. Bottom‐Up: The Long‐Term Impact of Government Ideology and Personal Experience on Values," IZA Discussion Papers 7279, Institute for the Study of Labor (IZA).
  10. Alessandro Olper & Valentina Raimondi, 2012. "Electoral Rules, Forms of Government and Redistributive Policy: Evidence from Agriculture and Food Policies," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 30512, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  11. Libman, A., 2013. "Between New Political Economy and Political Science: Convergence and Divergence of Disciplines," Journal of the New Economic Association, New Economic Association, New Economic Association, vol. 17(1), pages 166-169.
  12. Ilaria Petrarca & Roberto Ricciuti, 2014. "Synthetic ‘Real Socialism’: A Counterfactual Analysis of Political and Economic Liberalizations," Working Papers, University of Verona, Department of Economics 11/2014, University of Verona, Department of Economics.

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