Political institutions and economic reforms in Central and Eastern Europe: A snowball effect

Elise S. Brezis, Thierry Verdier

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

The purpose of this paper is to analyze the elements that can lead to a snowball effect during the process of transition. We develop a political economy model showing that when rulers of a country in one region opt for resigning and moving over to democratic rule, the other countries in the region are influenced to do the same. In other words, the decision of one country influences the type of equilibrium chosen by other countries in the region. A snowball effect is thus produced that reinforces the path to privatization. Our analysis defines parameters in the technology of political repression of one country that may be affected by decisions in neighboring countries. Regional political spillovers affecting these parameters are conducive to snowball effects.

Original languageEnglish
Pages (from-to)289-311
Number of pages23
JournalEconomic Systems
Volume27
Issue number3
DOIs
StatePublished - Sep 2003

Keywords

  • Communism
  • Privatization
  • Repression
  • Snowball effect

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