Nationalization and Privatization: A Rational-Choice Perspective on Efficiency

Ellen M. Pint

Journal of Public Policy, 1990, vol. 10, issue 3, 267-298

Abstract: This paper analyzes the use of nationalization and privatization policies to redistribute costs and benefits among interest groups, using a rational-choice framework. The major cases considered are the post-war nationalizations and the current wave of privatizations in the United Kingdom, plus France and the United States. The analysis indicates that governments tend to redistribute benefits to more concentrated interest groups, such as organized labor or shareholders, and to impose costs on more diffuse groups, such as consumers and taxpayers. This type of redistribution is often economically inefficient, but politically efficient for the party in power. Policy design is also influenced by the ease with which policies can be changed by future governments within the prevailing political institutions.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:jnlpup:v:10:y:1990:i:03:p:267-298_00

Access Statistics for this article

More articles in Journal of Public Policy from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().