The effects of privatization on firms and on social welfare : the Chilean case / by R. The views and interpretations in this document are those of the authors and should not be attributed to the Inter-American Development Bank, or to any individual acting on its behalf. The Research Department (RES) produces a quarterly newsletter, IDEA (Ideas for Development in the Americas), as well as workin...

Most privatization programs begin with a period of partial privatization in which only non-controlling shares of firms are sold on the stock market. Since management control is not transferred to private owners it is widely contended that partial privatization has little impact. This perspective ignores the role that the stock market can play in monitoring and rewarding managerial performance e...

Recent evidence on the savings from private production of local public services has become increasingly ambiguous. Here we specify and estimate a model to explain municipal costs for solid waste collection. As we find no effect of the mode of production on costs, we put forward two hypotheses. First, progressive concentration and decreases in bidding competition may come to outweigh gains from ...

In this study a directional output distance function which incorporates both desirable and undesirable output is employed to investigate the impact of privatization experienced by the Taiwan Motor Transport Company (TMTC). For the first time, we measure efficiency changes before and after privatization while treating transport risk as a joint but undesirable output. The empirical results demons...

The privatization process in Eastern Europe is not irreversible. Future governments may want to (partially) expropriate successul private rms in order to subsidize unsuccessful ones. We use a simple median voter model to predict the policy of future governments. It is shown that there will be less expropriation the more shares were distributed for free to the population. Diversi ed mass privati...

Recently, privatization has become very popular worldwide as an efficient means of constructing and operating infrastructure facilities. Like many other countries, Japan also has adopted a policy in favor of privatization, and has privatized several industries. Now, the privatization of expressway projects has become a controversial issue as the Japanese government has begun considering it as o...

The nations of the former Communist bloc face a task unparalleled in the annals of world history. By promoting allocation of market resources based on politics and social policy instead of economic efficiencies, the former regimes created economies of inefficiency. Committed economic reformers face the task of reallocating resources from inefficient producers dependent on government monies to c...

The economic literature shows that privatizing Social Security can improve labor supply incentives, but it can also reduce risk sharing when households face uninsurable risks. We simulate a stylized 50-percent privatization with transaction costs financed by consumption taxes and examined its impact on macroeconomic variables as well as on the welfare across generations and income classes. Our ...

OBJECTIVES The International Monetary Fund encourages privatization of state-owned tobacco industries. Privatization tends to lower cigarette prices, which encourages consumption. This could be countered with effective tax policies. We explored how investment by British American Tobacco (BAT) influenced tax policy in Uzbekistan during privatization there. METHODS We obtained internal document...

This paper describes the process of privatization of China’s Township Enterprises. Findings from a recent field survey by the authors show how far privatization has proceeded and how it has affected firm performance. The pervasiveness and impact of privatization are readily apparent. The privatization in the mid-1990s was deep and fundamental. More than 50% of local government-owned firms have ...