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What do Russians think about transition?

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  • Denisova, Irina
  • Eller, Markus
  • Zhuravskaya, Ekaterina

Abstract

We use data from the 2006 round of the Russian Longitudinal Monitoring Survey (RLMS) to describe perceptions of the Russian population about the transition process and the role of the state compared to that of free markets. We find that about one half of Russian population is disappointed with transition and a large majority is in favor of high state regulation and state provision of goods and services. High demand for government regulation and increased state intervention coexists with a low level of trust in government institutions and recognition of high and rising levels of corruption. The findings are consistent with the theory developed by Aghion et al. (2009). In an environment with poor social capital, private business imposes negative externalities on the society and society chooses to demand more state regulation and tolerate corruption in order to reduce these externalities. We also find that individual perceptions of social capital and corruption co-vary with the demand for regulation, as predicted by the theory.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7492.

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Date of creation: Oct 2009
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Handle: RePEc:cpr:ceprdp:7492

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Keywords: perceptions; regulation; Russia; transition; trust;

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References

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  1. Denisova, Irina & Eller, Markus & Frye, Timothy & Zhuravskaya, Ekaterina, 2009. "Who Wants To Revise Privatization? The Complementarity of Market Skills and Institutions," CEPR Discussion Papers 7260, C.E.P.R. Discussion Papers.
  2. Nick Bloom & Raffaella Sadun & John Van Reenen, 2009. "The Organization of Firms Across Countries," CEP Discussion Papers dp0937, Centre for Economic Performance, LSE.
  3. Simon Commander & Andrei Tolstopiantenko & Ruslan Yemtsov, 1997. "Channels of Redistribution: Inequality and Poverty in the Russian Transition," William Davidson Institute Working Papers Series 42, William Davidson Institute at the University of Michigan.
  4. Yuriy Gorodnichenko & Klara Sabirianova Peter & Dmitriy Stolyarov, 2009. "Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0905, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  5. Paolo Pinotti, 2009. "Trust and Regulation: Addressing a Cultural Bias," Temi di discussione (Economic working papers) 721, Bank of Italy, Economic Research and International Relations Area.
  6. Guriev, Sergei & Zhuravskaya, Ekaterina, 2009. "(Un)Happiness in Transition," CEPR Discussion Papers 7258, C.E.P.R. Discussion Papers.
  7. Fleisher, Belton M. & Sabirianova, Klara & Wang, Xiaojun, 2005. "Returns to skills and the speed of reforms: Evidence from Central and Eastern Europe, China, and Russia," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 351-370, June.
  8. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
  9. Grosfeld, Irena & Senik, Claudia, 2010. "The emerging aversion to inequality - Evidence from subjective data," CEPREMAP Working Papers (Docweb) 1006, CEPREMAP.
  10. Grosjean, Pauline & Senik, Claudia, 2008. "Why Populist Democracy Promotes Market Liberalization," IZA Discussion Papers 3527, Institute for the Study of Labor (IZA).
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Cited by:
  1. Jarko Fidrmuc & Matus Senaj, 2012. "Human Capital, Consumption, and Housing Wealth in Transition," Working and Discussion Papers WP 2/2012, Research Department, National Bank of Slovakia.
  2. Irena Grosfeld & Claudia Senik, 2008. "The Emerging Aversion to Inequality: Evidence from Poland 1992-2005," CASE Network Studies and Analyses 0360, CASE-Center for Social and Economic Research.
  3. Rinat Menyashev, 2011. "Consumer Cooperatives and Liberal Idea In Russia," HSE Working papers WP BRP 05/EC/2011, National Research University Higher School of Economics.
  4. R. Golinelli & R. Rovelli, 2011. "Did Growth and Reforms Increase Citizens’ Support for the Transition?," Working Papers wp771, Dipartimento Scienze Economiche, Universita' di Bologna.
  5. Shurchkov, Olga, 2012. "New elites and their influence on entrepreneurial activity in Russia," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 240-255.
  6. Ofer, Gur, 2010. "Twenty Years Later and the Socialist Heritage is still Kicking: the Case of Russia," Working Paper Series wp2010-59, World Institute for Development Economic Research (UNU-WIDER).
  7. Irina Denisova & Markus Eller & Timothy Frye & Ekaterina Zhuravskaya, 2010. "Everyone Hates Privatization, but Why? Survey Evidence from 28 Post-Communist Countries," Working Papers w0143, Center for Economic and Financial Research (CEFIR).
  8. Jarko FIDRMUC & Matus SENAJ, 2014. "Income, Schooling and Housing Wealth during Economic Reforms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(2), pages 160-176, March.

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