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

John Earle and Scott Gelbach
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Scott Gelbach: Departments of Political Science and Economics, University of California-Berkeley and CEFIR, Moscow

No 02-79, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

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.

Keywords: Czech; privatization; Earle; Gelbach; Upjohn (search for similar items in EconPapers)
JEL-codes: D72 L33 P26 P35 (search for similar items in EconPapers)
Date: 2002-04
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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Citations: View citations in EconPapers (3)

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Journal Article: A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic (2003)
Working Paper: A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic
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