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Optimal Privatization Design and Financial Markets
Author(s) -
BOSI STEFANO,
GIRMENS GUILLAUME,
GUILLARD MICHEL
Publication year - 2005
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/j.1467-9779.2005.00246.x
Subject(s) - voucher , economics , principal (computer security) , simple (philosophy) , financial market , incomplete markets , microeconomics , property rights , general equilibrium theory , financial economics , finance , accounting , computer science , philosophy , epistemology , operating system
This paper provides a simple general equilibrium analysis of privatization, exploring its real effects. They derive from the expansion of risk‐sharing opportunities (within an incomplete markets setting) that are created by the addition of a market in the public project property rights. The principal conclusion is that an optimal combination of voucher and share issue privatization can implement the first‐best.