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On Endogenous Efficiency in Public and Private Firms

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  • Paolo Bertoletti

Abstract

This paper reconsiders a model proposed by De Fraja (1993) to compare public and private production under complete and incomplete information. It is argued, in contrast to previous results, that such a model provides no convincing grounds to sustain the productive superiority of public ownership. It is also suggested that meaningful comparisons of efficiency require settings where differences in ownership imply different implementation constraints.

Suggested Citation

  • Paolo Bertoletti, 2001. "On Endogenous Efficiency in Public and Private Firms," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(3), pages 273-284, July.
    • Handle: RePEc:bla:jpbect:v:3:y:2001:i:3:p:273-284
    DOI: 10.1111/1097-3923.00067
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    Cited by:

    1. Marcello D'Amato & Riccardo Martina & Salvatore Piccolo, 2005. "Competitive Pressure, Incentives and Managerial Rewards," CSEF Working Papers 148, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 01 Jul 2006.

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