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The retreat of the state from entrepreneurial activities: A convergence analysis for OECD countries, 1980–2007

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  • Schuster, Philipp
  • Schmitt, Carina
  • Traub, Stefan

Abstract

In this paper, we measure the extent and dissemination of the retreat of the state from entrepreneurial activities in 20 OECD countries during the 1980–2007 period using a three-dimensional concept and a new dataset, the REST database. We consider privatization, deregulation in network-based services, and the cutback of subsidies. Though the empirical analysis confirms a clear trend towards diminishing state influence in all three dimensions, the analysis of both sigma and conditional beta convergence indicates convergence only for privatization (measured by public employment) and for subsidization, indicating that OECD countries have become similar and have converged to a common equilibrium with respect to these dimensions.

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  • Schuster, Philipp & Schmitt, Carina & Traub, Stefan, 2013. "The retreat of the state from entrepreneurial activities: A convergence analysis for OECD countries, 1980–2007," European Journal of Political Economy, Elsevier, vol. 32(C), pages 95-112.
    • Handle: RePEc:eee:poleco:v:32:y:2013:i:c:p:95-112
    DOI: 10.1016/j.ejpoleco.2013.06.008
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    More about this item

    Keywords

    Privatization; Regulation; Subsidies; Convergence;
    All these keywords.

    JEL classification:

    • H82 - Public Economics - - Miscellaneous Issues - - - Governmental Property
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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