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Privatisation in Poland: What Was the Government Trying to Achieve?

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Author Info
De Fraja, Gianni
Roberts, Barbara M

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Abstract

This paper uses the sequencing of privatisation to infer the objective pursued by the Polish government in the privatisation of its large manufacturing firms in the second half of the 1990's. We construct a model of mixed oligopoly, and use it to evaluate the privatisation process; our analysis is based on the assumption that firms which furthered the government's objective function the most would be chosen to be privatised first. Our empirical analysis identifies the features of the firms that were chosen for early privatisation, and suggests that the welfare maximisation was more important than the desire to maximise the revenues from privatisation and the government's budget, or to minimise employment losses.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6114.

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Date of creation: Feb 2007
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Handle: RePEc:cpr:ceprdp:6114

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Related research
Keywords: Eastern Europe; mixed oligopoly; Poland; privatisation;

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I28 - Health, Education, and Welfare - - Education - - - Government Policy

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  1. Aasim M. Husain & Ratna Sahay, 1992. "Does Sequencing of Privatization Matter in Reforming Planned Economies," IMF Working Papers 92/13, International Monetary Fund.
  2. Roland, Gerard, 1994. "On the Speed and Sequencing of Privatisation and Restructuring," Economic Journal, Royal Economic Society, vol. 104(426), pages 1158-68, September. [Downloadable!] (restricted)
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  3. Nandini Gupta & John Ham & Jan Svejnar, 2000. "Priorities and Sequencing in Privatization: Theory and Evidence from the Czech Republic," Econometric Society World Congress 2000 Contributed Papers 1580, Econometric Society. [Downloadable!]
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  4. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 3-28, Winter. [Downloadable!] (restricted)
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  5. J. David Brown & John S. Earle & Almos Telegdy, 2006. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 61-99, February. [Downloadable!] (restricted)
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  6. Glaeser, Edward L. & Scheinkman, Jose A., 1996. "The Transition to Free Markets: Where to Begin Privatization," Journal of Comparative Economics, Elsevier, vol. 22(1), pages 23-42, February. [Downloadable!] (restricted)
  7. Cremer, Helmuth & Marchand, Maurice & Thisse, Jacques-Francois, 1989. "The Public Firm as an Instrument for Regulating an Oligopolistic Market," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 283-301, April. [Downloadable!] (restricted)
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  8. de Fraja, Giovanni & Delbono, Flavio, 1989. "Alternative Strategies of a Public Enterprise in Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 302-11, April. [Downloadable!] (restricted)
  9. Katz Barbara G. & Owen Joel, 1993. "Privatization: Choosing the Optimal Time Path," Journal of Comparative Economics, Elsevier, vol. 17(4), pages 715-736, December. [Downloadable!] (restricted)
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