In this paper we estimate the effects of the 1991 breakups of Czechoslovak state owned enterprises (SOEs) on subsequent performance of the master enterprises and the spun-off units. Our analysis is based on quarterly and annual data of Czechoslovak industrial enterprises. We estimate the...

This study of how privatization and stabilization (hard budget constraints) affect enterprise behavior shows that privatized firms consistently outperform state enterprises in productivity growth. Total factor productivity improves in privatized firms, where there is also less overemployment...

Using firm-level data, we estimate the effects of the major wave of 1991 breakups of Czechoslovak state-owned enterprises on the subsequent performance of the "master enterprises" and spun-off divisions. We estimate the performance effects of spinoffs by comparing the performance of enterprises...