Explaining individual-level support for privatization in European post-Soviet economies

Abstract. This article explores the sources of individual-level variation in support economic privatization in seven European post-Soviet countries. It tests economic utilitarian and psychological explanations of variations in support for economic privatization. The economic utilitarian explanation posits that individuals seek to maximize their potential material gains from economic liberalization. The psychological explanation posits that if individuals are generally risk averse, they are not likely to support economic privatization. These hypotheses are then tested using two separate regression models. The first model estimates pooled data from across all seven European post-Soviet economies. The second model is a pooled analysis that interacts country-specific dummy variables with each of the independent variables in order to examine the country-specific effects of the responses. The results show that the economic utilitarian and psychological explanations are both strong predictors of why some support and others oppose privatization in the seven European post-Soviet countries.