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On Endogenous Efficiency in Public and Private Firms
Author(s) -
Bertoletti Paolo
Publication year - 2001
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/1097-3923.00067
Subject(s) - contrast (vision) , production (economics) , economics , private information retrieval , microeconomics , productive efficiency , public economics , public good , production model , computer science , computer security , artificial intelligence
This paper reconsiders a model proposed by De Fraja (1993) to compare public and private production under complete and incomplete information. It is argued, in contrast to previous results, that such a model provides no convincing grounds to sustain the productive superiority of public ownership. It is also suggested that meaningful comparisons of efficiency require settings where differences in ownership imply different implementation constraints.