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Author:Rodrik, D.
Title:The dynamics of political support for reform in economies in transition
Journal:Journal of the Japanese and International Economies
1995 : DEC, VOL. 9:4, p. 403-425
Index terms:ECONOMIC CONDITIONS
POLITICS
ECONOMICS
Language:eng
Abstract:This paper considers a simple model of economic transition to analyze the dynamics of preferences over economic policy. The author considers an economy with two sectors: a high-productivity private sector, which initially employs a small share of the economy's workforce , and low-productivity state sector, where the majority of the population is employed at the outset. The analysis focuses on the dynamic evolution of workers' preferences over the level of the subsidy to the state sector. A worker in the private sector always prefers the lowest subsidy to the state sector possible.
SCIMA record nr: 141600
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