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

Author

Listed:
  • John S. Earle

    (W.E. Upjohn Institute for Employment Research and Central European University)

  • Scott Gelbach

    (Departments of Political Science and Economics, 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 1459 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.

Suggested Citation

  • John S. Earle & Scott Gelbach, 2002. "A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic," Upjohn Working Papers and Journal Articles 02-79, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:02-79 Note: A revised version of this paper appears in Economics and Politics, Vol. 15, No. 1 (March 2003). See http://ideas.repec.org/a/bla/ecopol/v15y2003i1p1-32.html. Please cite this revised version.
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    References listed on IDEAS

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    13. 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(02), pages 183-223, April.
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    Citations

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    Cited by:

    1. Alberto Chong & Florencio Lopez-de-Silanes, 2003. "The Truth About Privatization in Latin America," Research Department Publications 3180, Inter-American Development Bank, Research Department.
    2. Alberto Chong & Florencio Lopez-de-Silanes, 2004. "Privatization in Mexico," Research Department Publications 4373, Inter-American Development Bank, Research Department.
    3. 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.
    4. Rafael Di Tella & Ernesto Schargrodsky, 2009. "Happiness, Ideology and Crime in Argentine Cities," IDB Publications (Working Papers) 1662, Inter-American Development Bank.
    5. Doyle, Orla & Fidrmuc, Jan, 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.
    6. Alberto Chong & Florencio Lopez-de-Silanes, 2003. "The Truth About Privatization in Latin America," Research Department Publications 3180, Inter-American Development Bank, Research Department.

    More about this item

    Keywords

    Czech; privatization; Earle; Gelbach; Upjohn;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

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