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Everyone Hates Privatization, but Why? Survey Evidence from 28 Post-Communist Countries

Listed author(s):
  • Irina Denisova

    (CEFIR - Center for Economic and Financial Research - CEFIR)

  • Markus Eller

    (OeNB - The Oesterreichische Nationalbank - The Oesterreichische Nationalbank)

  • Timothy Frye

    (Harriman Institute - Columbia University [New York])

  • Ekaterina Zhuravskaya

    (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, NES - New Economic School - NES)

Studies of mass support for economic reform reveal a simple conclusion: Everyone hates privatization. Yet whether respondents hold this view due to a preference for state property or concerns about the legitimacy of privatization is unclear. We test these arguments using a 2006 survey of 28,000 individuals in 28 post-communist countries and find that a lack of human capital affects support for revising privatization primarily via a preference for state property over private property; whereas transition-related hardships influence support for revising privatization due to both a preference for state property and concerns about the legitimacy of privatization. These results suggest the value of analyses that not only link respondent traits with support for policy, but that also probe the motivations that underpin this support. They also indicate that opposition to privatization should not be equated with support for renationalization.

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Paper provided by HAL in its series PSE - Labex "OSE-Ouvrir la Science Economique" with number halshs-00754602.

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Length:
Date of creation: Feb 2012
Publication status: Published in Journal of Comparative Economics, Elsevier, 2012, 40 (1), pp.44-61. 〈10.1016/j.jce.2011.11.001〉
Handle: RePEc:hal:pseose:halshs-00754602
DOI: 10.1016/j.jce.2011.11.001
Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754602
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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  1. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
  2. Ugo Panizza & Mónica Yañez, 2005. "Why are Latin Americans so unhappy about reforms?," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 1-29, May.
  3. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
  4. 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, 04.
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  9. Sonin, Konstantin, 2003. "Why the rich may favor poor protection of property rights," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 715-731, December.
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  12. Denisova, Irina & Eller, Markus & Frye, Timothy & Zhuravskaya, Ekaterina, 2009. "Who Wants To Revise Privatization? The Complementarity of Market Skills and Institutions," CEPR Discussion Papers 7260, C.E.P.R. Discussion Papers.
  13. Di Tella, Rafael & Galiani, Sebastian & Schargrodsky, Ernesto, 2012. "Reality versus propaganda in the formation of beliefs about privatization," Journal of Public Economics, Elsevier, vol. 96(5), pages 553-567.
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  19. repec:cup:apsrev:v:103:y:2009:i:02:p:284-304_09 is not listed on IDEAS
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