What Do Russians Think About Transition?

32 Pages Posted: 1 Mar 2010

See all articles by Irina Denisova

Irina Denisova

Center for Economic and Financial Research (CEFIR); New Economic School (NES)

Markus Eller

Oesterreichische Nationalbank (OeNB)

Ekaterina Zhuravskaya

Paris School of Economics (PSE)

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Abstract

We use data from the 2006 round of the Russian Longitudinal Monitoring Survey to describe perceptions of the Russian population about the transition process and the role of the state compared with that of free markets. We find that about one-half of the Russian population is disappointed with transition and a large majority is in favour of high state regulation and state provision of goods and services. High demand for government regulation and increased state intervention coexists with a low level of trust in government institutions and recognition of high and rising levels of corruption. The findings are consistent with the theory developed by Aghion et al. (2009). In an environment with poor social capital, private business imposes negative externalities on the society and society chooses to demand more state regulation and tolerate corruption to reduce these externalities. We also find that individual perceptions of social capital and corruption co-vary with the demand for regulation, as predicted by the theory.

Suggested Citation

Denisova, Irina and Eller, Markus and Zhuravskaya, Ekaterina, What Do Russians Think About Transition?. Economics of Transition, Vol. 18, Issue 2, pp. 249-280, April 2010. Available at SSRN: https://ssrn.com/abstract=1558040 or http://dx.doi.org/10.1111/j.1468-0351.2009.00381.x

Irina Denisova (Contact Author)

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

47 Nakhimovsky Prospect, Office #720
117418 Moscow
Russia
+7 095 332 4083 (Phone)

New Economic School (NES)

100A Novaya Street
Moscow, Skolkovo 143026
Russia

Markus Eller

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3
Vienna, A-1090
Austria
+43 1 404 20-5227 (Phone)
+43 1 404 20-045227 (Fax)

HOME PAGE: http://www.oenb.at/en/Monetary-Policy/Research/Researchers/Markus-Eller.html

Ekaterina Zhuravskaya

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

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