Popular Attitudes Toward Markets & Institutional Reform in Transition Economies

Abstract:     
Any set of formal institutions requires a legitimating and complementary cultural system. Re-examining existing data and studies indicates low levels of public support for a market economy in transition countries. In addition, support is lower in less successful transition economies, indicating that political preferences affect institutional change. It is shown that the currently available data leaves open questions about the structure and origins of these political attitudes. Three out of four hypotheses on the origin of this lacking support can be rejected after the data analysis. In addition, thirty-five in-depth interviews were conducted with individuals from east and west Germany. The results suggest a novel hypothesis for future research – risk preferences and social disruptions are the main cause for the dissatisfaction with the market economy.

Number of Pages in PDF File: 18

Keywords: Economic Sociology, Transitional Economies, East Germany, Qualitative Research Methods, Institutional Change

JEL Classification: P26, P3, Z13

working papers series