There is widespread anecdotal evidence that poor stock market performance is an important reason for taking a company private. The results support the perceived undervaluation hypothesis. The finding also applies to management buy-outs, which indicates that the management of these firms had...

This paper uses a two-period model to examine the macroeconomic consequences of anticipated price liberalization. In the first period prices are controlled, there is excess demand for goods and consumers must engage in costly queuing to make purchases. In the second period prices are freed,...