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Micro and Macro Determinants of Public Support for Market Reforms in Eastern Europe

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Author Info
Bernd Hayo (ZEI University of Bonn)

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Abstract

This paper looks at public support for the creation of a market economy in Eastern Europe. As a data base, the Central and Eastern Eurobarometers surveys are employed, covering up to 21 countries over a time period of 1990-96 and totalling more than 100000 observations on individuals. The development of support for market reforms is analysed over time and countries. Moreover, in a number of panel regressions, individual and macroeconomic determinants of support for reforms are studied. Apart from the influence of individual characteristics (age, gender, education, income), the only significant and robust aggregate effect is that those countries that are able to keep inflation low get more support for market reforms. Small government budget deficits may also help to strengthen support. Differences in employment, GDP per capita, openness, private sector share and microeconomic transition progress do not show robust effects on people's attitudes towards the creation of a market economy.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0004002.

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Length: 31 pages
Date of creation: 17 May 2000
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Handle: RePEc:wpa:wuwpdc:0004002

Note: Type of Document - pdf; to print on acrobat reader; pages: 31; figures: included
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Web page: http://129.3.20.41

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Keywords: Economic Reforms Eastern Europe Public Support Transformation

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Find related papers by JEL classification:
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
P1 - Economic Systems - - Capitalist Systems
P2 - Economic Systems - - Socialist Systems and Transition Economies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Shleifer, Andrei, 1997. "Government in transition," European Economic Review, Elsevier, vol. 41(3-5), pages 385-410, April. [Downloadable!] (restricted)
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  2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  3. Yavlinsky Grigory & Braguinsky Serguey, 1994. "The Inefficiency of Laissez-Faire in Russia: Hysteresis Effects and the Need for Policy-Led Transformation," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 88-116, August. [Downloadable!] (restricted)
  4. Robert J. Shiller & Maxim Boycko & Vladimir Korobov, 1992. "Hunting for Homo Sovieticus: Situational versus Attitudinal Factors in Economic Behavior," NBER Reprints 1741, National Bureau of Economic Research, Inc.
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  5. Shiller, Robert J & Boycko, Maxim & Korobov, Vladimir, 1991. "Popular Attitudes toward Free Markets: The Soviet Union and the United States Compared," American Economic Review, American Economic Association, vol. 81(3), pages 385-400, June.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bernd Hayo & Wolfgang Seifert, 2002. "Subjective Economic Well-Being in Eastern Europe," Development and Comp Systems 0203001, EconWPA. [Downloadable!]
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