"The paper analyzes governments' tradeoff between fiscal benefits and consumer surplus in privatization reforms of … noncompetitive industries in developing countries. Under privatization, the control rights are transferred to private interests so … developing countries, tight budget constraints imply that privatization may be optimal for low profitability segments. For highly …

-term performance (static effect), those undergoing privatization had particularly poor performance beforehand (selection effect), and … these banks dramatically improved following privatization (dynamic effect. However, much of the measured improvement is …