Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/springer-journals/privatization-neutrality-theorem-when-a-public-firm-pursues-general-ik0YmHCWBP
References (23)
-
Toshihiro Matsumura, Yoshihiro Tomaru (2013)
Mixed Duopoly, Privatization, and Subsidization with Excess Burden of TaxationERN: Other Macroeconomics: Prices
-
Kojun Hamada (2016)
Privatization neutrality theorem in a mixed oligopoly with firm asymmetryEconomics Bulletin, 36
-
D. Bös (1991)
Privatization: A Theoretical Treatment -
J Tirole (1993)
A Theory of Incentives in Procurement and Regulation -
(2014)
Economic Analysis on Competition between Public and Private Firms and Privatization -
Sususmu Cato, Toshihiro Matsumura (2013)
Long-Run Effects of Tax Policies in a Mixed Market, 69
-
Vasileios Zikos (2007)
A Reappraisal of the Irrelevance result in mixed duopoly: A note on R&D competitionEconomics Bulletin, 12
-
G. Myles, H. Khodavaisi, N. Hashimzade (2007)
An irrelevance result with differentiated goodsEconomics Bulletin, 8
-
M. Gil-Moltó, Joanna Poyago-Theotoky, Vasileios Zikos (2011)
R&D Subsidies, Spillovers, and Privatization in Mixed MarketsSouthern Economic Journal, 78
-
Yoshihiro Tomaru, Masayuki Saito (2010)
Mixed Duopoly, Privatization and Subsidization in an Endogenous Timing FrameworkERN: Privatization & Nationalization (Topic)
-
K. Fjell, J. Heywood (2004)
Mixed oligopoly, subsidization and the order of firm's moves: the relevance of privatizationEconomics Letters, 83
-
Vasileios Zikos (2007)
Stackelberg mixed oligopoly with asymmetric subsidiesEconomics Bulletin, 12
-
Kazuhiko Kato, Yoshihiro Tomaru (2007)
Mixed oligopoly, privatization, subsidization, and the order of firms' moves: Several types of objectivesEconomics Letters, 96
-
Toshihiro Matsumura, Yoshihiro Tomaru (2012)
Market Structure and Privatization Policy Under International CompetitionInternational Trade eJournal
-
Hideya Kato (2008)
Privatization and government preferenceEconomics Bulletin, 12
-
Toshihiro Matsumura, Yasunori Okumura (2013)
Privatization neutrality theorem revisitedEconomics Letters, 118
-
Yoshihiro Tomaru (2006)
Mixed Oligopoly, Partial Privatization and SubsidizationEconomics Bulletin, 12
-
Joanna Poyago-Theotoky (2001)
Mixed oligopoly, subsidization and the order of firms' moves: an irrelevance resultEconomics Bulletin, 12
-
M. White (1996)
Mixed oligopoly, privatization and subsidizationEconomics Letters, 53
-
J. Brabant (1997)
Privatization–An Economic AnalysisComparative Economic Studies, 39
-
Kojun Hamada (2016)
Privatization Neutrality Theorem and Discriminatory Subsidy Policy -
G. Myles (2002)
Mixed oligopoly, subsidization and the order of firms' moves: an irrelevance result for the general caseEconomics Bulletin, 12
-
M. Fulton, L. Karp (1989)
Estimating the objectives of a public firm in a natural resource industryJournal of Environmental Economics and Management, 16
- Publisher
- Springer Journals
- Copyright
- 2017 Japanese Economic Association
- ISSN
- 1352-4739
- eISSN
- 1468-5876
- DOI
- 10.1111/jere.12143
- Publisher site
- See Article on Publisher Site
Abstract
Abstract This paper examines the privatization neutrality theorem when a public firm pursues general objectives other than welfare maximization. This theorem states that when the government gives firms optimal subsidies, welfare is exactly the same before and after privatization. However, we present a seemingly paradoxical result. When a public firm incorrectly assumes that subsidies change the welfare size, privatization is necessarily welfare neutral, whereas when the public firm correctly recognizes that subsidies only bring about income redistribution, without affecting welfare, the situations in which neutrality holds are limited.
Journal
The Japanese Economic Review – Springer Journals
Published: Mar 1, 2018
Keywords: economics, general; microeconomics; macroeconomics/monetary economics//financial economics; econometrics; development economics; economic history