Liberalization-privatization paths: policies and politics
We empirically investigate the political determinants of deregulation policies in six network industries of thirty OECD countries, over 1975-2007. Contrary to previous literature, we unbundle privatization and liberalization policies and measure whether their simultaneous determination is affected by government’s ideology. Despite conventional wisdom, we find a systematic political trade-off between privatizations and liberalizations. Right-wing executives tend to privatize more and to liberalize less, relative to left-wing governments. The main lesson we derive is that ideological cleavages affect the composition of deregulation policy. Our results may shed new lights on the political-economic rationale behind deregulation choices.
|Date of creation:||30 Nov 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 02 50321522
Fax: +39 02 50321505
Web page: http://www.demm.unimi.it
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bjørnskov, Christian & Potrafke, Niklas, 2012.
"Political ideology and economic freedom across Canadian provinces,"
Munich Reprints in Economics
20277, University of Munich, Department of Economics.
- Christian Bj�rnskov & Niklas Potrafke, 2012. "Political Ideology and Economic Freedom Across Canadian Provinces," Eastern Economic Journal, Palgrave Macmillan, vol. 38(2), pages 143-166.
- Christian Bjørnskov & Niklas Potrafke, 2009. "Political ideology and economic freedom across Canadian provinces," Working Papers CEB 09-054.RS, ULB -- Universite Libre de Bruxelles.
- Newbery, David M., 2002. "Problems of liberalising the electricity industry," European Economic Review, Elsevier, vol. 46(4-5), pages 919-927, May.
- Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
- 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.
- Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
- Harrington, Joseph E, Jr, 1993. "Economic Policy, Economic Performance, and Elections," American Economic Review, American Economic Association, vol. 83(1), pages 27-42, March.
- Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2002.
"An assessment of telecommunications reform in developing countries,"
Policy Research Working Paper Series
2909, The World Bank.
- Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
- K. Arin & Mehmet Ulubaşoğlu, 2009.
"Leviathan resists: the endogenous relationship between privatization and firm performance,"
Springer, vol. 140(1), pages 185-204, July.
- Mehmet Ulubasoglu & K. Peren Arin, 2005. "Leviathan Resists: The Endogenous Relationship Between Privatisation and Firm Performance," Economics Series 2005_17, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Bernardo Bortolotti & Paolo Pinotti, 2008.
Springer, vol. 136(3), pages 331-351, September.
- Cukierman, Alex & Tommasi, Mariano, 1998.
"When Does It Take a Nixon to Go to China?,"
American Economic Review,
American Economic Association, vol. 88(1), pages 180-97, March.
- Cukierman, A. & Tommasi, M., 1997. "When Does It Take a Nixon to Go to China," Papers 30-97, Tel Aviv.
- Cukierman, A. & Tommasi, M., 1997. "When does it take a Nixon to go to China?," Discussion Paper 1997-91, Tilburg University, Center for Economic Research.
- Mariano Tommasi, 1995. "Why Does it Take a Nixon to go to China?," UCLA Economics Working Papers 728, UCLA Department of Economics.
- Niklas Potrafke, 2010.
"Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries,"
Springer, vol. 143(1), pages 135-155, April.
- Potrafke, Niklas, 2010. "Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries," Munich Reprints in Economics 19284, University of Munich, Department of Economics.
- Tomaso Duso, 2002. "On the Politics of the Regulatory Reform: Econometric Evidence from the OECD Countries," CIG Working Papers FS IV 02-07, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Jens Høj & Vincenzo Galasso & Giuseppe Nicoletti & Thai-Thanh Dang, 2006. "The Political Economy of Structural Reform: Empirical Evidence from OECD Countries," OECD Economics Department Working Papers 501, OECD Publishing.
- Cesar Martinelli & Mariano Tommasi, 1993. "Sequencing of Economic Reforms in the Presence of Political Constraints," UCLA Economics Working Papers 701, UCLA Department of Economics.
- Hans Pitlik, 2007. "A race to liberalization? Diffusion of economic policy reform among OECD-economies," Public Choice, Springer, vol. 132(1), pages 159-178, July.
- Mark Armstrong & David Sappington, 2005.
"Regulation, Competition and Liberalization,"
0505011, EconWPA, revised 07 Oct 2005.
When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2011-32. 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: (DEMM Working Papers)
If references are entirely missing, you can add them using this form.