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Privatization and local government reform in Germany: A slow train

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  • Schmidt, Klaus-Dieter

Abstract

The paper investigates the recent trends in privatization by local government organizations in Germany. It comes to the conclusion that the privatization policy has been two-directional: on the one hand, municipalities have reduced their economic activities, mainly by different forms of contracting out; on the other hand, they have expanded them into profitable fields. In many cases they have preferred a phantom privatization: government bodies have only been transferred into a private-law establishment. The paper examines the barriers to privatization and provides a strategy to overcome them.

Suggested Citation

  • Schmidt, Klaus-Dieter, 1998. "Privatization and local government reform in Germany: A slow train," Kiel Working Papers 891, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:891
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    References listed on IDEAS

    as
    1. Caves, Douglas W & Christensen, Laurits R, 1980. "The Relative Efficiency of Public and Private Firms in a Competitive Environment: The Case of Canadian Railroads," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 958-976, October.
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    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods

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