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

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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 1,459 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. Copyright 2003 Blackwell Publishing Ltd.
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  • John S. Earle & Scott G. Gehlbach, "undated". "A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic," Upjohn Working Papers and Journal Articles jse20033, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:jse20033 Note: Appears in Economics and Politics 15(1): 1-32
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    1. Dewatripont, Mathias & Roland, Gerard, 1995. "The Design of Reform Packages under Uncertainty," American Economic Review, American Economic Association, pages 1207-1223.
    2. Gerard Roland, 1994. "The role of political constraints in transition strategies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 27-41, March.
    3. Dewatripont, Mathias & Roland, Gerard, 1995. "The Design of Reform Packages under Uncertainty," American Economic Review, American Economic Association, pages 1207-1223.
    4. Claessens, Stijn & Djankov, Simeon, 1999. "Ownership Concentration and Corporate Performance in the Czech Republic," Journal of Comparative Economics, Elsevier, pages 498-513.
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    6. Evans, Geoffrey & Whitefield, Stephen, 1995. "The Politics and Economics of Democratic Commitment: Support for Democracy in Transition Societies," British Journal of Political Science, Cambridge University Press, vol. 25(04), pages 485-514, October.
    7. Hirshleifer,Jack, 2001. "The Dark Side of the Force," Cambridge Books, Cambridge University Press, number 9780521804127, November.
    8. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
    9. Saunders, Peter, 1995. "Privatization, Share Ownership and Voting," British Journal of Political Science, Cambridge University Press, vol. 25(01), pages 131-137, January.
    10. M. Dewatripont & G. Roland, 1992. "Economic Reform and Dynamic Political Constraints," Review of Economic Studies, Oxford University Press, vol. 59(4), pages 703-730.
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    12. Harper, Joel T., 2002. "The performance of privatized firms in the Czech Republic," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 621-649, April.
    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.
    14. Grigoriev, Serguei E. & Nagaev, Serguei A. & Wörgötter, Andreas, 1994. "Regional Economic Development and Political Attitudes of the Population of Russia: Results for the December 1993 Federal Elections," East European Series 15, Institute for Advanced Studies.
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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 republic; privatization; transition;

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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