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Beyond Machiavellism : The Political Economy Of Privatisation

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  • Rudiger Ahrend

Abstract

Over the last two decades, governments have most of the time granted -sometimes substantial- discounts when privatisating state assets. In average this discount has been higher under more right wing governments, and in more unequal countries. We present a simple political economy model of privatisation that can explain these main stylised facts of the recent privatisation experiences without having to rely on widespread ''machiavellian'' behaviour of governments. Moreover we investigate under which circumstances privatisation can proceed, and who will be the main beneficiaries. Finally we discuss the connection between privatisation and the efficiency of a country's tax system.

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  • Rudiger Ahrend, 2002. "Beyond Machiavellism : The Political Economy Of Privatisation," DELTA Working Papers 2002-12, DELTA (Ecole normale supérieure).
  • Handle: RePEc:del:abcdef:2002-12
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    1. McGuire, Thomas G., 2000. "Physician agency," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 9, pages 461-536 Elsevier.
    2. Holly, Alberto & Gardiol, Lucien & Domenighetti, Gianfranco & Brigitte Bisig, 1998. "An econometric model of health care utilization and health insurance in Switzerland," European Economic Review, Elsevier, pages 513-522.
    3. Ma, Ching-to Albert & McGuire, Thomas G, 1997. "Optimal Health Insurance and Provider Payment," American Economic Review, American Economic Association, vol. 87(4), pages 685-704, September.
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