IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v15y2003i1p1-32.html
   My bibliography  Save this article

A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic

Author

Listed:
  • John S. Earle

    (Central European University)

  • Scott Gehlbach

    (University of California--Berkeley, and CEFIR, Moscow)

Abstract

We analyze the role of privatization in creating a constituency for economic reform, markets, and democratic institutions, focusing on the Czech Republic. Drawing on a 1996 survey, we examine the 1,459 respondents" opinions on reforms, economic policies and systems, the legitimacy of transition, and democratic values. Using ordered probit estimation, we find that receiving property through restitution is strongly associated with support for reform and markets. Concerning voucher privatization, we find positive effects for participants retaining shares, but little impact of participation alone. Our simulations suggest that policy designs have substantial consequences for citizens" support of reforms, markets, and democracy. Copyright 2003 Blackwell Publishing Ltd.

Suggested Citation

  • John S. Earle & Scott Gehlbach, 2003. "A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic," Economics and Politics, Wiley Blackwell, vol. 15(1), pages 1-32, March.
  • Handle: RePEc:bla:ecopol:v:15:y:2003:i:1:p:1-32
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dewatripont, Mathias & Roland, Gerard, 1995. "The Design of Reform Packages under Uncertainty," American Economic Review, American Economic Association, vol. 85(5), pages 1207-1223, December.
    2. Claessens, Stijn & Djankov, Simeon, 1999. "Ownership Concentration and Corporate Performance in the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 498-513, September.
    3. Lane, Robert E., 1986. "Market Justice, Political Justice," American Political Science Review, Cambridge University Press, vol. 80(2), pages 383-402, June.
    4. Pereira,Luiz Carlos Bresser & Maravall,José María & Przeworski,Adam, 1993. "Economic Reforms in New Democracies," Cambridge Books, Cambridge University Press, number 9780521438452, November.
    5. C. Martinelli & M. Tommasi, 1997. "Sequencing of Economic Reforms in the Presence of Political Constraints," Economics and Politics, Wiley Blackwell, vol. 9(2), pages 115-131, July.
    6. M. Dewatripont & G. Roland, 1992. "Economic Reform and Dynamic Political Constraints," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 703-730.
    7. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
    8. P. Lian & S.‐J. Wei, 1998. "To Shock or Not to Shock? Economics and Political Economy of Large‐Scale Reforms," Economics and Politics, Wiley Blackwell, vol. 10(2), pages 161-183, July.
    9. Gerard Roland, 1994. "The role of political constraints in transition strategies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 27-41, March.
    10. Philippe Aghion & Olivier Jean Blanchard, 1994. "On the Speed of Transition in Central Europe," NBER Chapters, in: NBER Macroeconomics Annual 1994, Volume 9, pages 283-330, National Bureau of Economic Research, Inc.
    11. Saunders, Peter, 1995. "Privatization, Share Ownership and Voting," British Journal of Political Science, Cambridge University Press, vol. 25(1), pages 131-137, January.
    12. Duch, Raymond M., 1993. "Tolerating Economic Reform: Popular Support for Transition to a Free Market in the Former Soviet Union," American Political Science Review, Cambridge University Press, vol. 87(3), pages 590-608, September.
    13. Robert J. Shiller & Maxim Boycko & Vladimir Korobov, 1992. "Hunting for Homo Sovieticus: Situational versus Attitudinal Factors in Economic Behavior," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 127-194.
    14. D. R. Kiewiet & M. Udell, 1998. "Twenty-five Years after Kramer: An Assessment of Economic Retrospective Voting based upon Improved Estimates of Income and Unemployment," Economics and Politics, Wiley Blackwell, vol. 10(3), pages 219-248, November.
    15. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
    16. Finifter, Ada W. & Mickiewicz, Ellen, 1992. "Redefining the Political System of the USSR: Mass Support for Political Change," American Political Science Review, Cambridge University Press, vol. 86(4), pages 857-874, December.
    17. Miller, Arthur H. & Hesli, Vicki L. & Reisinger, William M., 1994. "Reassessing Mass Support for Political and Economic Change in the Former USSR," American Political Science Review, Cambridge University Press, vol. 88(2), pages 399-411, June.
    18. Harper, Joel T., 2002. "The performance of privatized firms in the Czech Republic," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 621-649, April.
    19. Evans, Geoffrey & Whitefield, Stephen, 1995. "The Politics and Economics of Democratic Commitment: Support for Democracy in Transition Societies," British Journal of Political Science, Cambridge University Press, vol. 25(4), pages 485-514, October.
    20. Reisinger, William M. & Miller, Arthur H. & Hesli, Vicki L. & Maher, Kristen Hill, 1994. "Political Values in Russia, Ukraine and Lithuania: Sources and Implications for Democracy," British Journal of Political Science, Cambridge University Press, vol. 24(2), pages 183-223, April.
    21. Grigoriev, Serguei E. & Nagaev, Serguei A. & Wörgötter, Andreas, 1994. "Regional Economic Development and Political Attitudes of the Population of Russia: Results for the December 1993 Federal Elections," East European Series 15, Institute for Advanced Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alberto Chong & Florencio de, 2003. "The Truth about Privatization in Latin America," Yale School of Management Working Papers ysm436, Yale School of Management.
    2. Chong, Alberto E. & López-de-Silanes, Florencio, 2004. "Privatization in Mexico," IDB Publications (Working Papers) 1538, Inter-American Development Bank.
    3. Jin, Olivia & Pyle, William, 2023. "Labor market hardships and preferences for public sector employment and employers: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 577-591.
    4. Ingrid Nielsen & Chris Nyland & Russell Smyth & Cherrie Jiuhua Zhu, 2005. "Perceptions of Subjective Economic Well-Being and Support for Market Reform among China's Urban Population," Post-Communist Economies, Taylor & Francis Journals, vol. 17(4), pages 425-447.
    5. Rafael di Tella & Ernesto Schargrodsky, 2009. "Happiness, Ideology and Crime in Argentine Cities," Research Department Publications 4645, Inter-American Development Bank, Research Department.
    6. Fidrmuc, Jan & Doyle, Orla, 2003. "Anatomy of Voting Behaviour and Attitudes During Post-Communist Transition Czech Republic 1990-98," CEPR Discussion Papers 3801, C.E.P.R. Discussion Papers.
    7. Scott Gehlbach, 2003. "Taxability and Low-Productivity Traps," Working Papers w0029, New Economic School (NES).
    8. Rovelli, Riccardo & Zaiceva, Anzelika, 2009. "Transition Fatigue? Cross-Country Evidence from Micro Data," IZA Discussion Papers 4224, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gerard Rpland, 2001. "The Political Economy of Transition," William Davidson Institute Working Papers Series 413, William Davidson Institute at the University of Michigan.
    2. Campos, Nauro F. & Horváth, Roman, 2006. "Reform Redux: Measurement, Determinants and Reversals," IZA Discussion Papers 2093, Institute of Labor Economics (IZA).
    3. Hayo, Bernd, 2004. "Public support for creating a market economy in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 720-744, December.
    4. Francesco Caselli & Nicola Gennaioli, 2008. "Economics and Politics of Alternative Institutional Reforms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1197-1250.
    5. Micael Castanheira & Gaëtan Nicodème & Paola Profeta, 2012. "On the political economics of tax reforms: survey and empirical assessment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 598-624, August.
    6. Randolph Luca Bruno, 2003. "Speed of Transition, Unemployment Dynamics and Nonemployment Policies: Evidence from the Visegrad Countries," LEM Papers Series 2003/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Kim, Byung-Yeon & Jukka Pirttila, 2003. "The Political Economy of Reforms: Empirical Evidence from Post-Communist Transition in the 1990s," Royal Economic Society Annual Conference 2003 120, Royal Economic Society.
    8. Ichiro Iwasaki & Taku Suzuki, 2016. "Radicalism Versus Gradualism: An Analytical Survey Of The Transition Strategy Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 807-834, September.
    9. Micael Castanheira & Gaëtan Nicodème & Paola Profeta, 2012. "On the Political Economics of Tax Reforms: survey and empirical assessment," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2012-08-ccr, Condorcet Center for political Economy.
    10. Kim, Byung-Yeon & Pirttila, Jukka, 2006. "Political constraints and economic reform: Empirical evidence from the post-communist transition in the 1990s," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 446-466, September.
    11. Jain, Sanjay & Sharun Mukand, 2003. "Public Opinion and the Dynamics of Reform," Royal Economic Society Annual Conference 2003 114, Royal Economic Society.
    12. repec:zbw:bofitp:2003_004 is not listed on IDEAS
    13. Micael Castanheira & Gaëtan Nicodème & Paola Profeta, 2012. "On the political economics of tax reforms: survey and empirical assessment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 598-624, August.
    14. Byung-Yeon Kim & Jukka Pirttilä, 2003. "The political economy of reforms: Empirical evidence from post- communist transition in the 1990s," Macroeconomics 0304009, University Library of Munich, Germany.
    15. Stephanie Eble & Petya Koeva, 2002. "What Determines Individual Preferences over Reform? Microeconomic Evidence from Russia," IMF Staff Papers, Palgrave Macmillan, vol. 49(Special i), pages 87-110.
    16. Mr. S. Nuri Erbas, 2002. "Primeron Reforms in a Second-Best Ambiguous Environment: A Case for Gradualism," IMF Working Papers 2002/050, International Monetary Fund.
    17. Che, Jiahua & Facchini, Giovanni, 2004. "Dual Track Liberalization: With and Without Losers," Working Papers 04-0100, University of Illinois at Urbana-Champaign, College of Business.
    18. Gupta, Nandini & Ham, Jhon C. & Svejnar, Jan, 2008. "Priorities and sequencing in privatization: Evidence from Czech firm panel data," European Economic Review, Elsevier, vol. 52(2), pages 183-208, February.
    19. Andrew Austin & Tatyana Kosyaeva & Nathaniel Wilcox, 2005. "Believe but Verify? Russian Views and the Market," CERGE-EI Working Papers wp278, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    20. Agnello, Luca & Castro, Vitor & Jalles, João Tovar & Sousa, Ricardo M., 2015. "What determines the likelihood of structural reforms?," European Journal of Political Economy, Elsevier, vol. 37(C), pages 129-145.
    21. Perotti, Roberto, 1998. "The Political Economy of Fiscal Consolidations," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 367-394, March.

    More about this item

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecopol:v:15:y:2003:i:1:p:1-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.