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

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  • Polyachenko Sergiy

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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    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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