Learning, political attitudes and the crisis in transition countries
AbstractWe study how the recent economic crisis has reshaped support for democracy and the market economy in 30 transition countries. Political values are cyclical and reflect a learning process. Support for the market and democracy has decreased between 2006 and 2010 in countries that were hit the hardest and that were the furthest along the reform path, and notably new EU members. In contrast, such support has increased in the CIS, driven by the young and unemployed. Although individual exposure to the crisis is associated with lower-than-average support for democracy and markets, it leads these segments of the population, which were most excluded from the political-economic system in place, to demand more liberal reforms in countries with corrupt institutions and lagging reforms. We rely on individual level, within-country variation and on the use of many individual controls to identify the causal effect of the crisis on attitudes.
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Bibliographic InfoPaper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 140.
Length: 36 pages
Date of creation: Dec 2011
Date of revision:
Publication status: Published in Working papers 140, European Bank for Reconstruction and Development
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Web page: http://www.ebrd.com/pages/research/publications/workingpapers.shtml
More information through EDIRC
Crisis; cycles; corruption; learning; political preferences;
Other versions of this item:
- Pauline Grosjean & Frantisek Ricka & Claudia Senik, 2011. "Learning, Political Attitudes and the Crisis in Transition Countries," Discussion Papers 2011-16, School of Economics, The University of New South Wales.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
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