Markets wanted – expectation overshooting in transition
Neher, Frank ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleMarkets wanted – expectation overshooting in transition
AuthorNeher, Frank
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages40 S.
Series ; 2011,1 : Economics
Keywordsconvergence; beliefs; public support; reform; bias; signalling
Classification (DDC)337 International economics
AbstractWe analyse and compare individual beliefs about the effects of competition and their evolution over time in transition economies and experienced market economies. At the onset of transition, competition beliefs in transition countries are far more positive than in market economies. Over time, this difference has vanishes. Convergence can be attributed to changing believes in transition countries. We argue that overly optimistic competition beliefs in transition countries contributed to the possibility of implementing far reaching pro-market
reforms and show that competition beliefs underlay support for economic reform. The empirical analysis is supplemented with a simple learning model rationalizing the findings on competition belief overshooting.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Lehrstuhl für öffentliche Finanzen
Year of publication2011
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2012-02-16 : 11:21:37
Last changed2016-01-05 : 02:38:23
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000013003