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Partisan privatizations: assessing the ideological bias

  • Filippo Belloc
  • Antonio Nicita

Previous empirical literature suggests that privatization choices are driven by ideology. However, available measures of this political bias are weakly grounded as they neglect crucial factors affecting privatizations, such as the liberalization levels and the public finance structure. To fill this gap, we perform an econometric analysis explicitly considering such neglected factors. Our findings conclude that privatization choices in OECD network industries are determined by right-wing ideology.

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File URL: http://hdl.handle.net/10.1080/13504851.2011.608638
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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 19 (2012)
Issue (Month): 10 (July)
Pages: 959-963

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Handle: RePEc:taf:apeclt:v:19:y:2012:i:10:p:959-963
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  1. Giovanni DE FRAJA, 1994. "Chicken or Egg. Which Should Come First, Privatisation or Liberalisation?," Annales d'Economie et de Statistique, ENSAE, issue 33, pages 133-156.
  2. Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1996. "The Proper Scope of Government: Theory and an Application to Prisons," NBER Working Papers 5744, National Bureau of Economic Research, Inc.
  3. De Fraja, Giovanni, 1991. "Efficiency and Privatisation in Imperfectly Competitive Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 311-21, March.
  4. Bernardo Bortolotti & Paolo Pinotti, 2008. "Delayed privatization," Public Choice, Springer, vol. 136(3), pages 331-351, September.
  5. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  6. Niklas Potrafke, 2010. "Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries," Public Choice, Springer, vol. 143(1), pages 135-155, April.
  7. K. Arin & Mehmet Ulubaşoğlu, 2009. "Leviathan resists: the endogenous relationship between privatization and firm performance," Public Choice, Springer, vol. 140(1), pages 185-204, July.
  8. Filippo Belloc & Antonio Nicita, 2011. "The political determinants of liberalization: do ideological cleavages still matter?," International Review of Economics, Springer, vol. 58(2), pages 121-145, June.
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