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Winners and Losers from the Privatization and Regulation of Utilities: Lessons from a General Equilibrium Model of Argentina

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Author Info
Chisari, Omar
Estache, Antonio
Romero, Carlos

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Abstract

A computable general equilibrium (CGE) model is used to estimate the macroeconomic and distributional effects of the privatization and regulation of utilities in Argentina, begun in 1989. Based on data available after the privatization that indicate different kinds of efficiency gains in electricity, gas, water, and telecommunications, both the privatization and effective regulation are estimated to yield significant macroeconomic benefits. Gains from the privatization accrue mainly to high-income classes, while gains from the effective regulation of newly privatized utilities accrue mainly to low-income classes. CGE estimates of overall employment effects suggest that privatization was not a major contributor to the dramatic rise in unemployment in Argentina between 1993 and 1995. This rise was more likely due to the "Tequila Effect" of an interest rate shock. Copyright 1999 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal World Bank Economic Review.

Volume (Year): 13 (1999)
Issue (Month): 2 (May)
Pages: 357-78
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Handle: RePEc:oup:wbecrv:v:13:y:1999:i:2:p:357-78

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  1. Pollitt, M. & Smith, A.S.J., 2001. "The Restructuring and Privatisation of British Rail: Was it really that bad?," Cambridge Working Papers in Economics 0118, Faculty of Economics, University of Cambridge. [Downloadable!]
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  2. Alvin Ang & Masatoshi Yamada, 2005. "A Theoretical Reexamination of Privatization: Assessing its Welfare and Distributional Impacts," DEGIT Conference Papers c010_028, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  3. Auriol, Emmanuelle & Picard, Pierre M, 2006. "Infrastructure and Public Utilities Privatization in Developing Countries," CEPR Discussion Papers 6018, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Parker, David & Kirkpatrick, Colin & Figueira-Theodorakopoulou, Catarina, 2005. "Infrastructure Regulation and Poverty Reduction in Developing Countries: A Review of the Evidence and a Research Agenda," Centre on Regulation and Competition (CRC) Working papers 30608, University of Manchester, Institute for Development Policy and Management (IDPM). [Downloadable!]
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  5. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Mali: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-10, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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  6. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Senegal: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-12, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  7. Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2000. "Utility privatization and the needs of the poor in Latin America - Have we learned enough to get it right?," Policy Research Working Paper Series 2407, The World Bank. [Downloadable!]
  8. Mota, R.L., 2003. "The Restructuring and Privatisation of Electricity Distribution and Supply Business in Brazil: A Social Cost-Benefit Analysis," Cambridge Working Papers in Economics 0309, Faculty of Economics, University of Cambridge. [Downloadable!]
  9. Preetum Domah & Michael G. Pollitt, 2001. "The restructuring and privatisation of the electricity distribution and supply businesses in England," Fiscal Studies, Institute for Fiscal Studies, vol. 22(1), pages 107-146, March. [Downloadable!]
  10. Domah, P. & Pollitt, M.G., 2000. "The Restructuring and Privatisation of Electricity Distribution and Supply Businesses in England and Wales: A Social Cost Benefit Analysis," Cambridge Working Papers in Economics 0007, Faculty of Economics, University of Cambridge. [Downloadable!]
  11. Guasch, J. Luis & Hahn, Robert W., 1997. "The costs and benefits of regulation : implications for developing countries," Policy Research Working Paper Series 1773, The World Bank. [Downloadable!]
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