Infrastructure and Public Utilities Privatization in Developing Countries

creativeworkseries.issn 1564-698X Auriol, Emmanuelle Picard, Pierre M. 2012-03-30T07:12:37Z 2012-03-30T07:12:37Z 2009-02-28
dc.description.abstract Should governments in developing countries promote private ownership and deregulated prices in noncompetitive sectors? Or should they run publicly owned firms and regulate prices at the expense of rents to insiders? A theoretical model is used to answer these normative questions. The analysis focuses on the tradeoff between fiscal benefits and consumer surplus during privatization of noncompetitive sectors. Privatization transfers control rights to private interests and eliminates public subsidies, yielding benefits to taxpayers at the cost of increased prices for consumers. In developing countries, where budget constraints are tight, privatization and price liberalization may be optimal for low profitability industries but suboptimal for more profitable industries. And once a market has room for more than one firm, governments may prefer to regulate the industry. Without a credible regulatory agency, regulation is achieved through public ownership. en
dc.identifier.citation World Bank Economic Review
dc.identifier.issn 1564-698X
dc.publisher World Bank
dc.relation.ispartofseries World Bank Economic Review
dc.rights CC BY-NC-ND 3.0 IGO
dc.rights.holder World Bank
dc.subject asymmetric information
dc.subject budget constraints
dc.subject consumer surplus
dc.subject consumers
dc.subject debt
dc.subject development economics
dc.subject duopoly
dc.subject econometrics
dc.subject economies of scale
dc.subject gdp
dc.subject industrial economics
dc.subject marginal costs
dc.subject monopolies
dc.subject monopoly
dc.subject natural monopolies
dc.subject opportunity cost
dc.subject opportunity costs
dc.subject perfect information
dc.subject price increases
dc.subject profitability
dc.title Infrastructure and Public Utilities Privatization in Developing Countries en
dc.type Journal Article en
dc.type Article de journal fr
dc.type Artículo de revista es
dspace.entity.type Publication
dspace.entity.type Publication
okr.crosscuttingsolutionarea Public-Private Partnerships
okr.doctype Journal Article
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Finance and Markets
okr.globalpractice Finance and Markets
okr.globalpractice Trade and Competitiveness 1
okr.language.supported en
okr.pagenumber 77
okr.pagenumber 100
okr.pdfurl wber_23_1_77.pdf en
okr.peerreview Academic Peer Review Peru Honduras Puerto Rico Burkina Faso Argentina
okr.region.geographical Latin America
okr.topic Economic Theory and Research
okr.topic Private Sector Development :: Emerging Markets
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Public Sector Economics and Finance
okr.topic Public Sector Corruption and Anticorruption Measures
okr.topic Banks and Banking Reform
okr.topic Finance and Financial Sector Development :: Access to Finance
okr.topic Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic Private Sector Development :: Privatization
okr.volume 23
relation.isJournalIssueOfPublication 765afeee-ef91-4a3a-8298-e46e98d8ca0a
relation.isJournalOfPublication c41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication 2a48d5d8-d550-47d9-ae0e-29ef4f0212f2
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