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On Endogenous Efficiency in Public and Private Firms

Paolo Bertoletti ()

Journal of Public Economic Theory, 2001, vol. 3, issue 3, 273-84

Abstract: This paper reconsiders a model proposed by De Fraja (1993) to compare public and private production under complete and incomplete information. It is argued, in contrast to previous results, that such a model provides no convincing grounds to sustain the productive superiority of public ownership. It is also suggested that meaningful comparisons of efficiency require settings where differences in ownership imply different implementation constraints. Copyright 2001 by Blackwell Publishing Inc.

Date: 2001
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Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

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