Arbeitspapier
Privatizations in developing countries and the government's budget constraint
In this paper, we study the impact of government's budget constraint on the optimal industrial policy in industries with increasing returns to scale. We show that privatization is preferred to regulation for intermediate values of the shadow cost of public funds (i.e., the Lagrange multiplier of the government's budget constraint). However, the advantage of privatization is likely to disappear once the product market allows the entry of more than one firm.In this paper, we study the impact of government's budget constraint on the optimal industrial policy in industries with increasing returns to scale. We show that privatization is preferred to regulation for intermediate values of the shadow cost of public funds (i.e., the Lagrange multiplier of the government's budget constraint). However, the advantage of privatization is likely to disappear once the product market allows the entry of more than one firm.
- Language
-
Englisch
- Bibliographic citation
-
Series: Nota di Lavoro ; No. 75.2002
- Classification
-
Wirtschaft
- Subject
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Privatisierung
Deregulierung
Budgetrestriktion
Industriepolitik
Theorie
Entwicklungsländer
- Event
-
Geistige Schöpfung
- (who)
-
Auriol, Emmanuelle
Picard, Pierre M.
- Event
-
Veröffentlichung
- (who)
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Fondazione Eni Enrico Mattei (FEEM)
- (where)
-
Milano
- (when)
-
2002
- Handle
- 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
- Auriol, Emmanuelle
- Picard, Pierre M.
- Fondazione Eni Enrico Mattei (FEEM)
Time of origin
- 2002
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