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The two sides of a ghost: Twenty years without the wall

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  • Migheli, Matteo

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Abstract

This paper compares individual preferences for a market economy in Western and Eastern Europe over more than one decade, since the fall of Berlin Wall. The aim is to understand whether preferences in the two blocks have converged towards the current orientation of the EU's economic policy: a market economy, where the Government decides the rules, but does not enter the game directly. This is important as in a democratic system the approved guidelines need the support of the population to be fully effective and not reversed by a change of the government. In the EU the integration process is still going on, especially since the entrance of several Eastern countries. This paper shows that Eastern and Western Europeans have different preferences: the first would like a larger direct intervention of the public hand in the economy, while the second prefer a more private-oriented market than their Eastern peers. In addition for the citizens of ex-soviet countries, the concept of "competition" seems to represent more the new ideology that defeated the communism rather than a real market mechanism. Nevertheless some convergence emerges from data, especially during the last years, i.e. after the negative impact of transition over Eastern economies left the place to a beneficial recovery.

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File URL: http://polis.unipmn.it/pubbl/RePEc/uca/ucapdv/migheli140.pdf
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Bibliographic Info

Paper provided by Institute of Public Policy and Public Choice - POLIS in its series POLIS Working Papers with number 125.

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Length: 30 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:uca:ucapdv:125

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Web page: http://polis.unipmn.it

Related research

Keywords: transition; Eastern Europe; Western Europe; people's support; market economy;

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References

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  1. Bernd Hayo, 2000. "Micro and Macro Determinants of Public Support for Market Reforms in Eastern Europe," Development and Comp Systems 0004002, EconWPA.
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Citations

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Cited by:
  1. McCloskey, Deirdre Nansen, 2009. "The Institution of Douglass North," MPRA Paper 21768, University Library of Munich, Germany.
  2. Giuranno, Michele, 2009. "The logic of party coalitions with political activism and public financing," POLIS Working Papers 134, Institute of Public Policy and Public Choice - POLIS.
  3. Marchese, Carla & Ramello, Giovanni B., 2010. "In the beginning was the Word. Now is the Copyright," POLIS Working Papers 140, Institute of Public Policy and Public Choice - POLIS.
  4. Bondonio, Daniele, 2009. "Impact identification strategies for evaluating business incentive programs," POLIS Working Papers 129, Institute of Public Policy and Public Choice - POLIS.
  5. Orso, Cristina Elisa, 2009. "Formal and informal sectors: Interactions between moneylenders and traditional banks in the rural Indian credit market," POLIS Working Papers 135, Institute of Public Policy and Public Choice - POLIS.

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