When Do State-Owned Firms Crowd Out Private Investment?

This note examines the conditions under which a state-owned firm with a political agenda crowds out investment by a private firm. We show that crowding out occurs if the private firm regards investments as strategic substitutes and private investment is undesirable from the state-owned firm's perspective.

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Year of publication:	2012-03
Authors:	Buehler, Stefan ; Wey, Simon
Institutions:	School of Economics and Political Science, Universität St. Gallen
Subject:	Public investment \| crowding out \| political agenda

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Extent:	application/pdf
Series:	Economics Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 1209 13 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; H42 - Publicly Provided Private Goods ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010535516