Arbeitspapier
Privatization and investment: Crowding-out effects vs financial diversification
In this paper, we study the effect of share issue privatization (SIP) on private investment and financial market under incomplete risk diversification. Risk neutrality and imperfect intertemporal substitutability make investment decreasing in privatization (crowding-out effect). Vice-versa with risk aversion and perfect intertemporal substitutability (diversification effect). Finally, with risk aversion and imperfect intertemporal substitutability, crowding-out effects are more than compensated by diversification effects if and only if risk aversion is sufficiently high (relatively, i.e. compared to the inverse of the elasticity of intertemporal substitution). We establish these results in the most favorable case for the dominance of the crowding-out effect, when the revenues of privatization are devoted to present public consumption.
- Sprache
-
Englisch
- Erschienen in
-
Series: Nota di Lavoro ; No. 108.2002
- Klassifikation
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
- Thema
-
Crowding-out effect
non-expected preferences
privatization
risk-sharing
Privatisierung
Börsengang
Investition
Verdrängungseffekt
Risikopräferenz
Substitutionselastizität
Zeitpräferenz
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Girmens, Guillaume
Guillard, Michel
- Ereignis
-
Veröffentlichung
- (wer)
-
Fondazione Eni Enrico Mattei (FEEM)
- (wo)
-
Milano
- (wann)
-
2002
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Girmens, Guillaume
- Guillard, Michel
- Fondazione Eni Enrico Mattei (FEEM)
Entstanden
- 2002
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