Arbeitspapier
The Political Economy of Privatization. Why Do Governments Want Reforms?
International organizations promote privatization as precondition for economic development. But is there really too little privatization? This political economy model asks for the incentives of governments to privatize or restructure a state-owned firm. Different government types are compared to identify the political and institutional determinants of privatization. Under privatization, governments commit not to influence the profit-maximizing employment choice by private investors. With respect to the social optimum, both voter-oriented and egoistic governments can have inefficiently high incentives to privatize. When this is the case, outside pressure to privatize is detrimental. An improving institutional environment reduces these inefficiencies.
- Language
-
Englisch
- Bibliographic citation
-
Series: Munich Discussion Paper ; No. 2004-1
- Classification
-
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Governmental Property
Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
- Subject
-
political incentives
privatization
restructuring
employment
- Event
-
Geistige Schöpfung
- (who)
-
Börner, Kira
- Event
-
Veröffentlichung
- (who)
-
Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
- (where)
-
München
- (when)
-
2004
- DOI
-
doi:10.5282/ubm/epub.296
- Handle
- URN
-
urn:nbn:de:bvb:19-epub-296-1
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Börner, Kira
- Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
Time of origin
- 2004
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