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This paper analyzes the interaction between two political economy decisions by a government: whether to privatize a public firm and what environmental policy to choose (an environmental tax or an emission standard). We find that when market competition is weak the government does not privatize...
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liberalization and their privatization which can be complete or partial such that upstream production is still run by an SOE. We show … in most cases even if a holdup problem exists. For any vertically separated structure we find that privatization through … multi-product firms welfare dominates privatization through single-product firms. -- Privatization ; vertical integration …
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We investigate the nature and extent of information asymmetry among traders in companies with government ownership. Consistent with a less transparent information environment, we find relatively less informed trading in the shares of firms with government presence, and specifically, fewer...
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This paper examines the consequences of creating a fully competitive market in a sector previously dominated by a cost-minimizing public firm. Workers in the economy are heterogeneous in their intrinsic motivation to work in the sector. In line with empirical findings, our model implies that...
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