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The Fundamental Privatization Theorem: Ideology, Evolution, Practice

Author

Listed:
  • Alexander Radygin

    (Gaidar Institute for Economic Policy)

  • Revold Entov

    (Gaidar Institute for Economic Policy)

Abstract

The article focuses on the analysis of the evolution of contemporary theoretic approaches to the choice of an optimal form of ownership, and the corresponding estimation of privatization in the context of the advantages and disadvantages of the public and private sectors of the national economy. Various interpretations of the fundamental privatization theorem are considered: based on the principal-agent relationship; based on the comparison of the structure of information flows; the combination of ownership rights and contractual rights; consideration of sociopolitical factors, etc. The latest trends in Russia’s de-statization policy in 2010-2013 are analyzed in the context of ‘reluctant privatization’, with special emphasis on the asymmetry between the statization and privatization processes.

Suggested Citation

  • Alexander Radygin & Revold Entov, 2014. "The Fundamental Privatization Theorem: Ideology, Evolution, Practice," Working Papers 0087, Gaidar Institute for Economic Policy, revised 2014.
  • Handle: RePEc:gai:wpaper:0087
    as

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    File URL: http://www.iep.ru/files/RePEc/gai/wpaper/0087Radygin.pdf
    File Function: Revised version, 2013
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    References listed on IDEAS

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    More about this item

    Keywords

    privatization; government failures; state policy; public choice; allocational efficiency; information;

    JEL classification:

    • H82 - Public Economics - - Miscellaneous Issues - - - Governmental Property
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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