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Do changes in social and economic characteristics affect attitude towards price control?

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  • Polyachenko Sergiy

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Abstract

This work examines how an individual adjusts his preferences about government price control when his social and economic characteristics change. Employing unique individual level data collected from Russian household in 2006 and 2013, we show that acquiring higher education decreases individual preferences toward government price control. Having a set of individuals questioned in 2006 and 2013 we observe changes of their preference along with changes in social and economic characteristics. This in turn, allows us to use first difference OLS estimations and eliminated bias caused by correlation of education and variety of unobserved characteristics that are fixed in time (i.e. unobserved innate abilities). Among other characteristics affecting decreasing individual demand for government price control are income and positive economic expectations.

Suggested Citation

  • Polyachenko Sergiy, 2016. "Do changes in social and economic characteristics affect attitude towards price control?," EERC Working Paper Series 16/05e, EERC Research Network, Russia and CIS.
  • Handle: RePEc:eer:wpalle:16/05e
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    References listed on IDEAS

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    1. Irina Denisova & Markus Eller & Ekaterina Zhuravskaya, 2010. "What do Russians think about transition?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(2), pages 249-280, April.
    2. Sergei Guriev & Maxim Trudolyubov & Aleh Tsyvinski, 2008. "Russian Attitudes Toward the West," Working Papers w0135, New Economic School (NES).
    3. 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.
    4. Hans Pitlik & Ludek Kouba, 2015. "Does social distrust always lead to a stronger support for government intervention?," Public Choice, Springer, vol. 163(3), pages 355-377, June.
    5. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
    6. Tor G Jakobsen & Ola Listhaug, 2012. "Issue ownership, unemployment and support for government intervention," Work, Employment & Society, British Sociological Association, vol. 26(3), pages 396-411, June.
    7. Ram Cnaan & Yeheskel Hasenfeld & Avital Cnaan & Jane Rafferty, 1993. "Cross-cultural comparison of attitudes toward welfare-state programs: Path analysis with log-linear models," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 29(2), pages 123-152, June.
    8. Hans Pitlik & Ludek Kouba, 2015. "Does social distrust always lead to a stronger support for government intervention?," Public Choice, Springer, vol. 163(3), pages 355-377, June.
    9. Dimitrova-Grajzl, Valentina & Grajzl, Peter & Guse, A. Joseph, 2012. "Trust, perceptions of corruption, and demand for regulation: Evidence from post-socialist countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 292-303.
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    More about this item

    JEL classification:

    • H13 - Public Economics - - Structure and Scope of Government - - - Economics of Eminent Domain; Expropriation; Nationalization
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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