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Imposed Institutions and Preferences for Redistribution

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  • Chong, Alberto
  • Gradstein, Mark

Abstract

To what extent do imposed institutions shape preferences? We consider this issue by comparing the market-versus-state attitudes of respondents from a capitalist country, Finland, and an ex-communist group of Baltic countries, and arguing that the period under the communist rule can be viewed as an “experiment” in institutional imposition. We find, consistent with some earlier related work, that citizens from ex-communist countries tend to be more supportive of state ownership than respondents from capitalist economies. However, they also favour increasing inequality and competition as the means to enhance incentives. Our conclusion is that, in some important relevant dimensions, institutional imposition (that lasted for about fifty years) had a limited effect on preferences.

Suggested Citation

  • Chong, Alberto & Gradstein, Mark, 2006. "Imposed Institutions and Preferences for Redistribution," CEPR Discussion Papers 5922, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5922
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    institutions; markets versus state; redistributional preferences;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D30 - Microeconomics - - Distribution - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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