We study the efficiency of capital allocations at state-controlled and privately owned business groups in China. Using …

there are clear improvements in performance post-privatization. The tiger can change its stripes; however, the government …

contrast to the quot;privatization premiumquot; found in earlier work, we find a negative effect of government ownership on … that the positive effects on profits of political ties through government ownership outweigh the potential efficiency costs …, suggesting that personal ties can substitute for the benefits of government ownership. The quot;privatization discountquot; is …

, privatization reduces efficiency by about $5,600 per future household despite improved labor supply incentives.We check the … risk sharing, thereby allowing partial privatization to produce efficiency gains of $2,700 per future household … face uninsurable risks. We simulate a stylized 50-percent privatization using an overlapping-generations model where …

among top 20 largest cities by population. We estimate the cost savings from privatization and explore the political economy … of why privatization rates are lower in high cost unionized areas. Our analysis finds that the full privatizaton could … result in cost savings of $5.7 billion in 2011 and that the gain in economic efficiency from more closely aligning bus fares …