Everyone Hates Privatization, but Why? Survey Evidence from 28 Post-Communist Countries

31 Pages Posted: 12 May 2010 Last revised: 24 Nov 2014

See all articles by Irina Denisova

Irina Denisova

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

Markus Eller

Oesterreichische Nationalbank (OeNB)

Timothy Frye

Columbia University - Department of Political Science; National Research University Higher School of Economics

Ekaterina Zhuravskaya

Paris School of Economics (PSE)

Date Written: May 10, 2010

Abstract

Studies of mass support for economic reform reveal a simple conclusion: Everyone hates privatization. Yet whether respondents hold this due to material self-interest or concerns about the legitimancy or outcomes of privatization view is unclear. We test these arguments using a 2006 survey of 28,000 individuals in 28 post-communist countries and find that a lack of human capital affects support for revising privatization primarily via a preference for state property over private property; whereas transition-related hardships influence support for revising privatization due to both a preference for state property and concerns about the legitimacy of privatization. These results suggest the value of analyses that not only link respondent traits with support for policy, but that also probe the motivations that underpin this support. They also indicate that opposition to privatization should not be equated with support for renationalization.

Keywords: privatization, revision, nationalization, property rights, demand for property rights, legitimacy of property rights, transition

JEL Classification: P26

Suggested Citation

Denisova, Irina and Eller, Markus and Frye, Timothy and Zhuravskaya, Ekaterina, Everyone Hates Privatization, but Why? Survey Evidence from 28 Post-Communist Countries (May 10, 2010). Journal of Comparative Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1604616 or http://dx.doi.org/10.2139/ssrn.1604616

Irina Denisova

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

Timothy Frye

Columbia University - Department of Political Science ( email )

MC3320
420 West 118th Street
New York, NY 10027
United States
212-854-3646 (Phone)

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Ekaterina Zhuravskaya (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

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