Insider-privatisation is, due to the political influence of incumbent managers and workers, the predominant form of privatisation in many transition economies. The model argues that while insider-privatisation often provides better managerial incentives, reform governments may not always wish to...

We investigate the privatization decision of a government whose objectives are to preserve jobs and to stabilize its budget. The firm considered needs restructuring, i.e. some funds must be provided and the manager must undertake an effort to reorganize the firm. If the productivity of the...

This paper observes that de-industrialisation has been mostly relative in Europe, with industrial value added and employment shrinking in relative terms, but industrial value added growing in absolute terms - at least until recently. Qualitatively, this relative de-industrialisation has been the...