German hospitals receive subsidies for investment costs by federal states. Theoretically, these subsidies have to cover … higher levels of subsidies compared to for-profit hospitals. In this study, I examine the sources of this disparity by … decomposing the differential in a so-called facilitation ratio, i.e. the ratio of subsidies to tangible fixed assets, revealing to …

data permit us to track the privatization process and to estimate the impact of privatization within industry-year cells … majority privatized versus state-owned firms. The gap increases with time since privatization, reaching about 15-17% five years … after privatization. It also increases with calendar time although recent privatizations are associated with smaller …