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Reassessing the Economic Effects of Post-Socialist Constitutions Using the Synthetic Control Method

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  • Katarzyna Metelska-Szaniawska

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

In response to the problems of endogeneity and causality in comparative studies with relatively small sample sizes, a new statistical approach has recently been developed, called the synthetic control method. In this paper we apply this method to reassess the effect of constitution-making in post-socialist countries of Europe and Asia on performance of these countries in the field of economic reforms during the post-1989 transition. We first verify the existence of such effects and evaluate their statistical significance. Then we search for the explanation of these effects and their magnitude focusing on the characteristics of these constitutions and the solutions that they envisage (structural provisions, bills of rights and enforcement mechanisms). Thanks to employing this approach we are able to avoid several technical caveats that have arisen in earlier studies and verify the validity of their conclusions. In addition, we obtain country-specific results for each individual post-socialist state, as well as formulate detailed insights regarding the actual mechanisms or channels of influence of the constitutional framework on economic reforms.

Suggested Citation

  • Katarzyna Metelska-Szaniawska, 2016. "Reassessing the Economic Effects of Post-Socialist Constitutions Using the Synthetic Control Method," Working Papers 2016-18, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2016-18
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    More about this item

    Keywords

    Constitutional Economics; post-socialist transition; economic reforms; synthetic control method; synthetic counterfactuals;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K19 - Law and Economics - - Basic Areas of Law - - - Other
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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