IDEAS home Printed from
   My bibliography  Save this paper

Quantitative analysis of privatization


  • M. Vahabi
  • G. R. Jafari


In recent years, the economic policy of privatization, which is defined as the transfer of property or responsibility from public sector to private sector, is one of the global phenomenon that increases use of markets to allocate resources. One important motivation for privatization is to help develop factor and product markets, as well as security markets. Progress in privatization is correlated with improvements in perceived political and investment risk. Many emerging countries have gradually reduced their political risks during the course of sustained privatization. In fact, most risk resolution seems to take place as privatization proceeds to its later stage. Alternative benefits of privatization are improved risk sharing and increased liquidity and activity of the market. One of the main methods to develop privatization is entering a new stock to the markets for arising competition. However, attention to the capability of the markets to accept a new stock is substantial. Without considering the above statement, it is possible to reduce the market's efficiency. In other words, introduction of a new stock to the market usually decreases the stage of development and activity and increases the risk. Based on complexity theory, we quantify how the following factors: stage of development, activity, risk and investment horizons play roles in the privatization.

Suggested Citation

  • M. Vahabi & G. R. Jafari, 2008. "Quantitative analysis of privatization," Papers 0803.2388,
  • Handle: RePEc:arx:papers:0803.2388

    Download full text from publisher

    File URL:
    File Function: Latest version
    Download Restriction: no

    References listed on IDEAS

    1. S. Z. Levendorski, 2004. "Early exercise boundary and option prices in Levy driven models," Quantitative Finance, Taylor & Francis Journals, vol. 4(5), pages 525-547.
    2. Carr, Peter, 1998. "Randomization and the American Put," Review of Financial Studies, Society for Financial Studies, vol. 11(3), pages 597-626.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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:arx:papers:0803.2388. 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: (arXiv administrators). General contact details of provider: .

    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.