Don’t bite the hand that feeds you: the cost of poor governance

Dag Detter and Stefan Fölster

Chapter Chapter 2 in The Public Wealth of Nations, 2015, pp 16-29 from Palgrave Macmillan

Abstract: Abstract Anyone flying from an American airport to any of the many newly built airports in Asia, or even some of the privately held airports in Europe, cannot help but notice a remarkable diference. The shoddy appearance of many American airports is not, in fact, a sign of thrift. Quite the opposite. Nearly all major US airports are owned by state or local governments that receive federal governmental subsidies for renovation and expansion. This mixing of responsibilities is in itself an obstacle to efficient management. But it does not stop there. Numerous federal roadblocks make cities hesitant to privatize. For example, government-owned airports can issue tax-exempt debt, which gives them a financial advantage over potential private competitors.

Keywords: Corporate Governance; Chinese Communist Party; State Ownership; Monopoly Price; Product Market Competition (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-51986-3_2

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DOI: 10.1057/9781137519863_2

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