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Privatization generally enhances firm-level efficiency. The impact of privatization on fiscal efficiency has, however …, been overlooked. Using the "tax-smoothing" ideas articulated in Barro (1979) and Bohn (1990), we argue that privatization … aggressively while countries that enjoy fiscal benefits as a result of state ownership will show little interest in privatization …
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We focus on the effect of state versus private ownership on the rates of firm-specific productivity growth and cost decline by developing a model of endogenous, firm-specific productivity growth and testing its implications against panel data on 23 international airlines of varying levels of...
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