PRIVATIZATION, RISK-TAKING, AND THE COMMUNIST FIRM

• 成果类型: Article; Proceedings Paper
• 署名作者: DEMOUGIN, D; SINN, HW
• 署名单位: University of Munich; Leibniz Association; Ifo Institut; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(94)90052-3
• 发表日期: 1994
• 页码: 203-231
• 关键词: Privatization; RISK THEORY; ECONOMIC TRANSFORMATION

摘要

This paper studies alternative methods of privatizing a formerly communist firm in the presence of imperfect risk markets. The methods include cash sales, a give-away scheme, and a participation contract where the government retains a sleeping fractional ownership in the firm. It is shown that, with competitive bidding, the participation contract dominates cash sales because it generates both more private restructuring investment and a higher expected present value of revenue for the government. Under weak conditions, the participation contract will induce more investment than the give-away scheme, and it may even share the cash sales' virtue of incentive compatibility.