As a government-supplied public good, infrastructure facilitates economic development by promoting marketization. Despite an infrastructure deficit in African countries, some governments lack the necessary finance and/or political will to provide this public good. Africa's demand for...

I present a study of ownership of firms under government rent seeking. Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such a government rent seeking activity leads to a typical hold-up problem. Government ownership is shown...