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Learning, political attitudes and crises: Lessons from transition countries

Author

Listed:
  • Pauline Grosjean

    (Australian School of Business [Sydney] - UNSW - University of New South Wales [Sydney])

  • Frantisek Ricka

    (EBRD - European Bank for Reconstruction and Development - EBRD)

  • Claudia Senik

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, UP4 - Université Paris-Sorbonne)

Abstract

This paper illustrates the sensitivity of political attitudes to the business cycle. It shows how the 2008 economic crisis has reshaped individual support for democracy and market liberalization in post-transition countries. Pro-reform attitudes have lost ground between 2006 and 2010 in Central and Eastern European countries that were hit by a negative economic shock. By contrast, they have increased in the CIS. Although on average, individual exposure to the crisis is associated with lower support to democracy and markets, it drives the demand for liberal reforms among groups of the population that were most excluded from the political-economic system in place, the youth particularly, in countries that lag behind in terms of liberalization and, where institutions are corrupt. We propose an interpretation of these evolutions in terms of learning and updating of beliefs.

Suggested Citation

  • Pauline Grosjean & Frantisek Ricka & Claudia Senik, 2013. "Learning, political attitudes and crises: Lessons from transition countries," PSE-Ecole d'économie de Paris (Postprint) halshs-00847352, HAL.
  • Handle: RePEc:hal:pseptp:halshs-00847352
    DOI: 10.1016/j.jce.2012.06.002
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    More about this item

    Keywords

    Political preferences; Crisis; Cycles; Corruption; Learning;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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