Learning, Political Attitudes and the Crisis in Transition Countries
AbstractWe estimate the impact of the recent economic crisis on support for democracy and a free market economy in 30 post transition countries and five western European 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 most advanced on the path to liberal reform, and notably new EU members. By contrast, it has increased in the CIS. This last result is driven by the young and unemployed. Although individual exposure to the crisis is associated with lower average support to 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 that lag behind in terms of economic and political reform. We rely on individual level, within-country variation and on the use of a large set of individual controls in order to identify the causal effect of the economic crisis on political attitudes.
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Bibliographic InfoPaper provided by School of Economics, The University of New South Wales in its series Discussion Papers with number 2011-16.
Length: 34 pages
Date of creation: Dec 2011
Date of revision:
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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," Working Papers 140, European Bank for Reconstruction and Development, Office of the Chief Economist.
- 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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