Privatization, risk-taking, and the communist firm

by Dominique Demougin

Publisher: National Bureau of Economic Research in Cambridge, MA

Written in English
Published: Pages: 34 Downloads: 620
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Subjects:

  • Privatization -- Mathematical models.,
  • Post-communism -- Mathematical models.,
  • Risk -- Mathematical models.

Edition Notes

  China's sweeping economic reforms, which have lifted the country to a starring role in the global economy in only a quarter-century, are marked by .   This article is from the British medical journal The Lancet. The Summary and Introduction are given here; the full article can be obtained from our documents section or their website below.. Summary Background During the earlys, adult mortality rates rose in most post-communist European countries. Substantial differences across countries and over time remain unexplained. importance of privatization se in production effincies. employment opportunities to people service to customers funding. The Implications of Privatization of State-owned Businesses in Poland after Privatization of state –owned companies became a very common practice in the countries once belonging to the Russian communist regime. The reasons for privatization in those countries were tightly related with the political system that used to be in place.

  How Ownership Structure Affects the Cost of Debt While privatization comes with benefits — like not being beholden to market speculation or a chorus of diverse shareholders — it also carries risks. Privately held companies, for instance, have limited access to public equity markets, which complicates their ability to keep operations afloat when cash is tight.

Privatization, risk-taking, and the communist firm by Dominique Demougin Download PDF EPUB FB2

This paper studies alternative methods of privatizing a formerly communist firm in the presence of imperfect risk markets. The methods include cash sales, a give-away scheme, and a participation contract where the government retains a sleeping fractional ownership in the firm.

This paper studies alternative methods of privatizing a formerly communist firm in the presence of imperfect risk markets. The methods include cash sales, a give-away scheme, and a participation contract where the government retains a sleeping fractional ownership in the by: Conclusions: Privatization with incomplete risk markets Privatizing the communist firm is not the same as privatizing British Telecom.

It is true, in a well-functioning market economy with developed capital and risk markets, there is a good case for privatization via cash by: Additional Physical Format: Online version: Demougin, Dominique, Privatization, risk-taking, and the communist firm.

Cambridge, MA: National Bureau of Economic. The methods include cash sales, a give-away scheme, and a participation contract where the govemment retains a sleeping fractional ownership in the firm.

lt is shown that, with competitive bidding, the participation contract dominates cash sales because it generates both more private restructuring investment and a higher expected present value of revenue for the govemment.

This paper studies alternative methods of privatizing a formerly communist firm in the presence of imperfect risk markets.

The methods include cash sales, a give-away scheme, and a participation contract where the government retains a sleeping fractional ownership in the firm. It is shown that, with competitive bidding, the participation contract dominates cash sales because it generates both.

Privatization, Risk-Taking, and the Communist Firm. By Dominique Demougin and Hans-Werner Sinn. Abstract. This paper studies alternative methods of privatizing a formerly communist firm in the presence of imperfect risk markets. The methods include cash sales, a give-away scheme, and a participation contract where the government retains a Author: Dominique Demougin and Hans-Werner Sinn.

demougin, d and sinn, hw () privatization, risk-taking, and the communist firm. journal of public economics, 55 (2).

- Cited by: Privatization, Risk-Taking, and the Communist Firm. Abstract. This paper studies alternative methods of privatizing a formerly communist firm in the presence of imperfect risk markets. The methods include cash sales, a give-away scheme, and a participation contract where the government retains a sleeping fractional ownership in the firm Author: Dominique Demougin and Hans-Werner Sinn.

J.L. Porket in his review of the book by John S. Earle, Roman Frydman and Andrzej Rapaczynski (eds), Privatization in the Transition to a Market Economy: Studies of Preconditions and Policies in Eastern Europe, London, Pinter,in The Slavonic and East European Review, vol.

72, no. 3 (July ), pp. Google Scholar. Each circle represents one of thefirm-year observations. Privatization Boosts Productivity, Now and Later Exhibit 3 lists the final estimates of productivity for 12 different industries (in rows, labeled in column 1).

Columns 2 and 3 show the long-run (β) and the short-run (β + γ) productivity gains after privatization. The Privatization Origins of Political orporations We classify firms into types of privatizations using a data-driven algo-rithm. Using book values, balance sheets, and the identity of buyers and board members before privatization, we construct relative measures of underpricing and closeness to Pinochet.

The former reveals differencesFile Size: KB. Privatization, risk-taking, and the communist firm by Demougin, Dominique & Sinn, Hans-Werner Limiting court behavior: a case for high minimum sentences and low maximum ones.

Introduction: Economic and Technological Principles in Designing Power Markets Privatization, risk-taking, and the communist firm This paper studies alternative methods of privatizing a.

Privatization occurs when a government-owned business, operation, or property becomes owned by a private, non-government party. Note that privatization Author: Marshall Hargrave.

Privatization under incomplete information and bankruptcy risk Article in Journal of Banking & Finance 29(3) March with 35 Reads How we measure 'reads'. Privatisation (or privatization in American English) can mean different things including moving something from the public sector into the private is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated.

Government functions and services may also be privatised (which may also be known as "franchising" or "out. The book might just as well have been titled Prerequisites for Privatization, rather than The Process of Privatization, for that is the emphasis of the readings on property rights. Only the chapters on New Zealand, the Czech Republic, and Mexico, and one on the specialized topic of spontaneous privatization in post-communist countries, can.

A privatization wave has swept the world, starting in the U.K. in the early s and then progressing to other developed and less-developed nations. This study examines how the country characteristics for the formerly state-owned enterprises relate to the nature of the privatization deal and the strategy of the acquiring firm.

In particular, this paper examines how country characteristics Cited by: how the privatization policies of post- communist countries affect their state firms’ labor inputs, as well as these firms’ outputs and exports.

In Section 4, we analyze the optimal privatization policy of a post -communist coun-try. Section 5 concludes. The Model and Assumptions. 8 Privatization, Labor Politics, and the Firm in Post‐Soviet Russia: Non‐market Norms, Market Institutions, and the Soviet Legacy; 9 Globalization in One Country: East Germany Between Moral Economy and Political Economy; 10 Corporatist Renaissance in Post‐communist Central Europe.

The Meaning of Privatization Paul Starr* Privatization is a fuzzy concept that evokes sharp political reac-tions. It covers a great range of ideas and policies, varying from the eminently reasonable to the wildly impractical.

Yet however varied and at times unclear in its meaning, privatization. Privatization and the Transition to a Market Economy Jason L. Saving the transition to a market economy would almost certainly cause an enormous reallocation of resources across sectors of the economy, making it difficult for citizens to gauge a firm’s future performance even if communist-era balance sheets were available.

A final problem. et al., ). Privatization may result in a decline in national economy, as demonstrated by a study of mass privatization in 25 post-communist countries (Hamm, King, & Stuckler, ). It can also potentially cause tremendous social upheaval in the short term, since privatization is often accompanied.

Government Privatization: History Examples, and Issues PAGE Executive Summary i I. Privatization 1 II. Forms of Privatization 1 III. Privatization around the World 3 IV. Reasons for Privatization 4 V. Valuation of Assets 7 VI. Privatization Examples 9 VII. Issues Associated with Privatization 19 VIII.

Conclusion 21 TABLES:File Size: KB. The first book to describe Russia's massive economic transformation for an American audience, Kremlin Capitalism provides a wealth of data and analyses not previously available in this country. The authors articulate the political and economic goals of Russian privatization, examine the current ownership of the largest enterprises in Russia, and chart the serious problem of corporate Cited by: In this study, by establishing a third-country trade model of an international duopoly where two state firms from different post-communist countries compete against each other, we analyze the effects of a change in the degree of privatization on firms’ labor inputs and on the optimal privatization policy in post-communist countries.

We show that a rise in the degree of privatization in a Author: Chang Liu, Yasunori Ishii. private management that follow privatization are a key factor in determining the effects of privatization on performance.

To determine the impact of privatization on the performance of the 31 firms studied, the authors performed two ratio analyses, one with unadjusted and the other with adjusted by: 4.

The privatization of large state-owned enterprises is one of the most radical policy developments of the last quarter century.

Right-wing governments have privatized in an effort to decrease the size of government, while left-wing governments have privatized either to compensate for the failures of state-owned firms or to generate revenues.

Privatization in Former Socialist States: Legal and Financial Aspects of the Ownership Transformation of Social Enterprises into Capital Companies UK ed. Edition by Borislav Grahovac (Author) › Visit Amazon's Borislav Grahovac Page.

Find all the books, read about the author, and more. Author: Borislav Grahovac. EAI, on the other hand, had hired a public relations firm to project its initial image to the community. Don’t promise a miracle.

It’s tempting to oversell privatization, but if you promise too much and privatization fails to reach your lofty predictions, you. Czechs Move Quickly to Privatization.

By Jane Perlez. where "spontaneous" privatization allowed Communist managers to skim off the best assets. a Washington-based economic analysis firm.KAINE: Donald Trump wrote a book and said Social Security is a Ponzi scheme and privatization would be good for all of us.

PENCE: Well, there they go again. KAINE: Go read the book And when Congressman Pence was in Congress, he was the chief cheerleader for the privatization .