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To Privatize or Not to Privatize: That is the Question; What is the Answer?

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  • Paul Cantor

    (Department of Economics, Lehman College, Bronx, NY 10468)

Abstract

This paper develops a model of the decision to privatize state-owned enterprises. The model highlights important variables for the government to consider in making privatization decisions. The model is then employed to show that, even when the state's objective is to maximize economic growth and privately owned firms invest less than the state does, the case against privatization is not clear-cut.

Suggested Citation

  • Paul Cantor, 1996. "To Privatize or Not to Privatize: That is the Question; What is the Answer?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 28(1), pages 96-111, March.
    • Handle: RePEc:sae:reorpe:v:28:y:1996:i:1:p:96-111
    DOI: 10.1177/048661349602800104
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