IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v83y1993i5p1199-1210.html
   My bibliography  Save this article

Large-Scale Privatization in Transition Economies

Author

Listed:
  • Laban, Raul
  • Wolf, Holger C

Abstract

To explain the slow progress of mass privatization programs in Eastern Europe, the authors present a model based on a positive spillover between aggregate privatization and the individual expected return to privatization, derived from a potential populist backlash if costly reforms do not bring forth sufficient aggregate privatization. The model allows for the simultaneous existence of a pessimistic zero-privatization trap and an optimistic full-privatization equilibrium defined by a critical mass of expected privatization. While both privatization subsidies and minimum-income guarantees can by themselves secure coordination on the optimistic equilibrium, the financing constraint may offset the direct effect. Copyright 1993 by American Economic Association.

Suggested Citation

  • Laban, Raul & Wolf, Holger C, 1993. "Large-Scale Privatization in Transition Economies," American Economic Review, American Economic Association, vol. 83(5), pages 1199-1210, December.
  • Handle: RePEc:aea:aecrev:v:83:y:1993:i:5:p:1199-1210
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0002-8282%28199312%2983%3A5%3C1199%3ALPITE%3E2.0.CO%3B2-1&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huizinga, Harry & Nielsen, Soren Bo, 2001. "Privatization, public investment, and capital income taxation," Journal of Public Economics, Elsevier, vol. 82(3), pages 399-414, December.
    2. Alexeev, Michael & Kaganovich, Michael, 1995. "Distributional constraints on the speed of privatization," Economics Letters, Elsevier, vol. 48(2), pages 213-219, May.
    3. Goel, Rajeev K. & Budak, Jelena, 2006. "Privatization in transition economies: Privatization scale and country size," Economic Systems, Elsevier, vol. 30(1), pages 98-110, March.
    4. Cheikbossian, Guillaume, 2003. "Property rights, rent-seeking and aggregate outcomes in transition economies," Economic Systems, Elsevier, vol. 27(3), pages 271-288, September.
    5. Laban, Raul M. & Larrain, Felipe B., 1997. "Can a liberalization of capital outflows increase net capital inflows?," Journal of International Money and Finance, Elsevier, vol. 16(3), pages 415-431, June.
    6. Johnson, Simon & Kouvelis, Panos & Sinha, Vikas, 1997. "On Reform Intensity under Uncertainty," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 297-321, December.
    7. Anders Åslund & Peter Boone & Simon Johnson, 1996. "How to Stabilize: Lessons from Post-communist Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1), pages 217-314.
    8. Chen, Gongmeng & Firth, Michael & Rui, Oliver, 2006. "Have China's enterprise reforms led to improved efficiency and profitability?," Emerging Markets Review, Elsevier, vol. 7(1), pages 82-109, March.
    9. Hanan G. Jacoby & Guo Li & Scott Rozelle, 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, American Economic Association, vol. 92(5), pages 1420-1447, December.
    10. Katz, Barbara G. & Owen, Joel, 1997. "Optimal Voucher Privatization Fund Bids When Bidding Affects Firm Performance," Journal of Comparative Economics, Elsevier, vol. 24(1), pages 25-43, February.
    11. Raul Laban & FElipe Larrain, 1995. "Continuity, Change, and the Political Economy of Transition in Chile," NBER Chapters,in: Reform, Recovery, and Growth: Latin America and the Middle East, pages 115-148 National Bureau of Economic Research, Inc.
    12. Janeba, Eckhard, 2004. "Global corporations and local politics: income redistribution vs. FDI subsidies," Journal of Development Economics, Elsevier, vol. 74(2), pages 367-391, August.
    13. Jaime Andrés Collazos & Héctor Ochoa, 2005. "The Effects of a Monopolistic Market Structure on the Assessment of Privatized Companies: The Colombia Case," ENSAYOS SOBRE ECONOMÍA REGIONAL (ESER) 013869, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    14. Litwack, John M. & Qian, Yingyi, 1998. "Balanced or Unbalanced Development: Special Economic Zones as Catalysts for Transition," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 117-141, March.
    15. Hansen, Nico A., 1997. "Privatization, technology choice and aggregate outcomes," Journal of Public Economics, Elsevier, vol. 64(3), pages 425-442, June.
    16. John Litwack & Yingyi Qian, "undated". "Balanced or Unbalanced Development: Special Economic Zones as Catalysts for Transition," Working Papers 97044, Stanford University, Department of Economics.
    17. Eckhard Janeba, 2001. "Global Corporations and Local Politics: A Theory of Voter Backlash," NBER Working Papers 8254, National Bureau of Economic Research, Inc.
    18. Fluck, Zsuzsanna & John, Kose & Abraham Ravid, S., 1996. "Privatizing in stages and the dynamics of ownership structure," Pacific-Basin Finance Journal, Elsevier, vol. 4(2-3), pages 277-296, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:83:y:1993:i:5:p:1199-1210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). General contact details of provider: http://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.