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Privatisation optimale dans un service public verticalement intégr é.
Author(s) -
Wen JeanFrançois,
Yuan Lasheng
Publication year - 2010
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2010.01596.x
Subject(s) - restructuring , deregulation , divestment , upstream (networking) , competition (biology) , downstream (manufacturing) , economics , allocative efficiency , business , industrial organization , market economy , vertical integration , microeconomics , finance , operations management , computer network , ecology , computer science , biology
We examine restructuring, divestiture, and deregulation of a vertically integrated public utility, (e.g., electricity), from a public finance perspective. How an optimal restructuring plan for the utility depends on the cost of public funds and on the X‐efficiency gains from privatization, how the optimal degree of competition in the upstream and downstream segments are connected, and implications of privatization for consumer prices are examined. The higher the cost of public funds, the more likely the post‐privatization price will exceed the regulated public utility price. The greater the X‐efficiency gains from privatization, the more likely the post‐privatization price will fall.