The Great Recession and Social Preferences: Evidence from Ukraine
CentER Discussion Paper Series No. 2015-046
46 Pages Posted: 30 Sep 2015 Last revised: 25 Oct 2015
Date Written: September 24, 2015
We use detailed survey data to document stark differences between West and East Ukraine when it comes to household attitudes toward market-based economies and democratic institutions. Along both of these dimensions, Eastern Ukrainians are decidedly less supportive of liberal systems. We also find that economic attitudes changed in response to the global financial crisis. West Ukrainian households who were affected more extensively by the crisis were more disappointed with the market and private ownership, while in Eastern Ukraine economic attitudes became less pro-market across the board. Our evidence suggests that attitudes and values are determined by both deep-rooted factors and more transient macroeconomic shocks.
Keywords: financial crisis, social preferences, Ukraine
JEL Classification: F36, P20
Suggested Citation: Suggested Citation