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When Do State-Owned Firms Crowd Out Private Investment?

  • Buehler, Stefan

    ()

  • Wey, Simon

    ()

This note examines the conditions under which a state-owned firm with a political agenda crowds out investment by a private firm. We show that crowding out occurs if the private firm regards investments as strategic substitutes and private investment is undesirable from the state-owned firm's perspective.

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File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-1209.pdf
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Paper provided by University of St. Gallen, School of Economics and Political Science in its series Economics Working Paper Series with number 1209.

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Length: 13 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:usg:econwp:2012:09
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