BERNARDO BORTOLOTTI DOMENICO SINISCALCO
- Published in print:
- 2004
- Published Online:
- April 2004
- ISBN:
- 9780199249343
- eISBN:
- 9780191600845
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199249342.003.0002
- Subject:
- Economics and Finance, Financial Economics
This chapter presents a concise survey of the economic literature of privatization providing the theoretical backing for the empirical analyses carried out in the book. The chapter shows why private ...
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This chapter presents a concise survey of the economic literature of privatization providing the theoretical backing for the empirical analyses carried out in the book. The chapter shows why private or public ownership may matter in the behavior of firms. Then it surveys the main results of the political economy approach to privatization, taking into account political preferences and government constraints. Finally, it analyzes the optimal privatization method in order to achieve the various economic and political objectives.Less
This chapter presents a concise survey of the economic literature of privatization providing the theoretical backing for the empirical analyses carried out in the book. The chapter shows why private or public ownership may matter in the behavior of firms. Then it surveys the main results of the political economy approach to privatization, taking into account political preferences and government constraints. Finally, it analyzes the optimal privatization method in order to achieve the various economic and political objectives.
Gernot Grabher and David Stark
- Published in print:
- 1996
- Published Online:
- October 2011
- ISBN:
- 9780198290209
- eISBN:
- 9780191684791
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198290209.003.0012
- Subject:
- Business and Management, Organization Studies, Political Economy
This chapter discusses that the real process of privatization is composed of a chain of constraints and dilemmas and that the institutional design of privatization plays a central role in coping with ...
More
This chapter discusses that the real process of privatization is composed of a chain of constraints and dilemmas and that the institutional design of privatization plays a central role in coping with these constraints and dilemmas. It concentrates on the creation and adoption of the institutional design of a privatization linchpin such as the East German Treuhandanstalt. This was a government holding company set up to sell off or close down the state-owned businesses and property of the GDR. The chapter also describes the institutional dynamics of the privatization process in the former GDR as reflected in the organizational development of Treuhandanstalt. The chapter argues that the logic of these dynamics was formulated by the need to build-up an organization of around 4,000 employees in less than twelve months; the need to control the social and political costs of privatization; and the need to cope with the economic risks surrounding the rapidity of privatization.Less
This chapter discusses that the real process of privatization is composed of a chain of constraints and dilemmas and that the institutional design of privatization plays a central role in coping with these constraints and dilemmas. It concentrates on the creation and adoption of the institutional design of a privatization linchpin such as the East German Treuhandanstalt. This was a government holding company set up to sell off or close down the state-owned businesses and property of the GDR. The chapter also describes the institutional dynamics of the privatization process in the former GDR as reflected in the organizational development of Treuhandanstalt. The chapter argues that the logic of these dynamics was formulated by the need to build-up an organization of around 4,000 employees in less than twelve months; the need to control the social and political costs of privatization; and the need to cope with the economic risks surrounding the rapidity of privatization.
