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Privatization in Austria: Some Theoretical Reasons and First Results About the Privatization Proceeds

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  • Ansgar Belke
  • Friedrich Schneider

Abstract

The issues of privatization (and sometimes deregulation) have been reviewed in a large literature on the various aspects of privatization, that has emphasized the potential efficiency gains. Hence, the goal of this paper is twofold: First to provide some theoretical reasoning why privatization is useful as well as profitable for an economy and second to empirically present the extent of privatization in Austria and other European Union countries. Therefore, the reasons why privatization is necessary are elaborated. Then the specific pattern privatization proceeds for Austria relative to other EU and OECD countries is presented. Moreover, some important idiosyncratic extensions for the Austrian case are elaborated. We argue that in the Austrian case, any discussion of privatization cannot be reduced to observing cash flows, the employment performance and the stock-exchange ratings of the privatized formerly stateowned enterprises. Since polito-economic aspects relating to income distribution and ideology play an important role in explaining the way, the extent, the speed and the economic effects of privatization, they have to be considered as well.
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  • Ansgar Belke & Friedrich Schneider, 2004. "Privatization in Austria: Some Theoretical Reasons and First Results About the Privatization Proceeds," CESifo Working Paper Series 1123, CESifo.
    • Handle: RePEc:ces:ceswps:_1123
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    References listed on IDEAS

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    Cited by:

    1. Belke, Ansgar & Gros, Daniel, 2009. "Is a unified macroeconomic policy necessarily better for a common currency area?," European Journal of Political Economy, Elsevier, vol. 25(1), pages 98-101, March.
    2. Andreff, Wladimir, 2013. "Une transition économique inattendue : vers le « cupidalisme » ?," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 14.
    3. Woojin Kim & Michael Weisbach, 2005. "Do Firms Go Public to Raise Capital?," NBER Working Papers 11197, National Bureau of Economic Research, Inc.
    4. Kim, Woojin & Weisbach, Michael S., 2008. "Motivations for public equity offers: An international perspective," Journal of Financial Economics, Elsevier, vol. 87(2), pages 281-307, February.
    5. repec:ces:ifodic:v:3:y:2005:i:1:p:14567530 is not listed on IDEAS
    6. Ansgar Belke & Friedrich Schneider, 2005. "Privatisation in Austria: Response to Internal and External Pressures," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(01), pages 26-32, April.
    7. Ansgar Belke & Lars Wang, 2005. "The Costs and Benefits of Monetary Integration Reconsidered: How to Measure Economic Openness," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 262/2005, Department of Economics, University of Hohenheim, Germany.
    8. Ansgar Belke & Friedrich Schneider, 2005. "Privatisation in Austria: Response to Internal and External Pressures," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(1), pages 26-32, 04.
    9. Friedrich Schneider & Ansgar Belke, 2004. "Privatization in Austria: Some theoretical reasons and performance measures," Economics working papers 2004-04, Department of Economics, Johannes Kepler University Linz, Austria.

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    Keywords

    Austria; partisan approach; privatization; state-owned enterprises; public choice;
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