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Privatization in Austria: Some theoretical reasons and performance measures

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Abstract

The issues of privatization (and sometimes deregulation) have been reviewed in a large literature on the various aspects of privatization, that has emphasized the potential efficiency gains. Hence, we provide some theoretical reasoning why privatization is useful as well as profitable for an economy and empirically present the extent of privatization in Austria and other European Union countries. In order to assess the impact of privatization in Austria on economic performance, we observe cash flows, the employment performance, and the stock-exchange ratings of the privatized formerly state-owned enterprises.

Suggested Citation

  • Friedrich Schneider & Ansgar Belke, 2004. "Privatization in Austria: Some theoretical reasons and performance measures," Economics working papers 2004-04, Department of Economics, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:econwp:2004_04
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    1. Ansgar Belke & Rainer Fehn & Neil Foster, 2001. "Venture Capital Investment and Labor Market Performance: A Panel Data Analysis," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 197/2001, Department of Economics, University of Hohenheim, Germany.
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    6. Carlin, Wendy & Fries, Steven & Schaffer, Mark & Seabright, Paul, 2001. "Competition and Enterprise Performance in Transition Economies: Evidence from a Cross-country Survey," CEPR Discussion Papers 2840, C.E.P.R. Discussion Papers.
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    8. Grossman, Sanford J & Hart, Oliver D, 1983. "An Analysis of the Principal-Agent Problem," Econometrica, Econometric Society, vol. 51(1), pages 7-45, January.
    9. Wolfgang Aussenegg, 2000. "Privatization versus Private Sector Initial Public Offerings in Poland," Multinational Finance Journal, Multinational Finance Journal, vol. 4(1-2), pages 69-99, March-Jun.
    10. Jones, Steven L. & Megginson, William L. & Nash, Robert C. & Netter, Jeffry M., 1999. "Share issue privatizations as financial means to political and economic ends," Journal of Financial Economics, Elsevier, vol. 53(2), pages 217-253, August.
    11. Wendy Carlin & Steven Fries & Mark Schaffer & Paul Seabright, 2001. "Competition and Enterprise Performance in Transition Economies from a Cross-Country Survey," CERT Discussion Papers 0101, Centre for Economic Reform and Transformation, Heriot Watt University.
    12. Boardman, Anthony E & Vining, Aidan R, 1989. "Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 1-33, April.
    13. Ansgar Belke & Friedrich Schneider, 2003. "Privatization in Austria: Some Theoretical Reasons and First Results About the Privatization Proceeds," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 229/2003, Department of Economics, University of Hohenheim, Germany.
    14. Bruno Biais & Enrico Perotti, 2002. "Machiavellian Privatization," American Economic Review, American Economic Association, vol. 92(1), pages 240-258, March.
    15. Mr. Jeffrey M. Davis & Mr. Thomas J Richardson & Mr. Rolando Ossowski & Mr. Steven A Barnett, 2000. "Fiscal and Macroeconomic Impact of Privatization," IMF Occasional Papers 2000/010, International Monetary Fund.
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    Cited by:

    1. Ansgar Belke & Albina Zenkić, 2007. "Exchange-rate Regimes and the Transition Process in the Western Balkans," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 42(5), pages 267-280, September.
    2. Belke, Ansgar H. & Baumgärtner, Frank & Schneider, Friedrich & Setzer, Ralph, 2005. "The Different Extent of Privatisation Proceeds in EU Countries: A Preliminary Explanation Using a Public Choice Approach," IZA Discussion Papers 1741, Institute of Labor Economics (IZA).
    3. Ansgar Belke & Andreas Schaal, 2005. "Chance Osteuropa – Herausforderung für die Finanzdienstleistung," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 261/2005, Department of Economics, University of Hohenheim, Germany.
    4. Ansgar Belke & Friedrich Schneider, 2005. "Privatisation in Austria: Response to Internal and External Pressures," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(1), pages 26-32, 04.
    5. Christina Schneider, 2010. "Fighting with one hand tied behind the back: political budget cycles in the West German states," Public Choice, Springer, vol. 142(1), pages 125-150, January.

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    More about this item

    Keywords

    Austria; Performance Measures; Privatization; Profitability; State-owned Enterprises;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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