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Micro and macro determinants of public support for market reforms in Eastern Europe

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  • Hayo, Bernd

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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Bibliographic Info

Paper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 25-1999.

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Date of creation: 1999
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Handle: RePEc:zbw:zeiwps:b251999

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Keywords: Economic Reforms; Eastern Europe; Public Support; Transformation;

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References

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  1. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, 05.
  2. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
  3. Robert J. Shiller & Maxim Boycko & Vladimir Korobov, 1990. "Popular Attitudes Towards Free Markets: The Soviet Union and the United States Compared," NBER Working Papers 3453, National Bureau of Economic Research, Inc.
  4. Shleifer, Andrei, 1997. "Government in transition," European Economic Review, Elsevier, vol. 41(3-5), pages 385-410, April.
  5. 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.
  6. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68.
  7. 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.
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Cited by:
  1. Bernd Hayo & Wolfgang Seifert, 2002. "Subjective Economic Well-Being in Eastern Europe," Development and Comp Systems 0203001, EconWPA.
  2. Migheli Matteo, 2009. "Supporting the Free and Competitive Market in China and India: Differences and Evolution Over Time," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200904, University of Turin.
  3. Migheli, Matteo, 2009. "The two sides of a ghost: Twenty years without the wall," POLIS Working Papers 125, Institute of Public Policy and Public Choice - POLIS.
  4. Migheli, Matteo, 2010. "Do the Vietnamese support Doi Moi?," POLIS Working Papers 151, Institute of Public Policy and Public Choice - POLIS.

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