Privatization and government preference

Hideya Kato ()
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Hideya Kato: Faculty of Economics, Nagoya Keizai University, 61-1, Uchikubo, Inuyama, Aichi, 484-8504, Japan

Economics Bulletin, 2008, vol. 12, issue 40, 1-7

Abstract: This paper uses a mixed oligopoly model to examine the relationship between the privatization of a public firm and government preferences for tax revenue. From a public choice viewpoint, we assume the government prefers tax revenue to the sum of consumer and producer surplus, whereas the public firm only cares about the sum of consumer and producer surplus. The results indicate that if the government sufficiently prefers tax revenue, it will not privatize the public firm.

Keywords: Mixed; oligopoly; Privatization; Taxation; Government; preference (search for similar items in EconPapers)
JEL-codes: H2 L3 (search for similar items in EconPapers)
Date: 2008-12-17
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Citations: View citations in EconPapers (10)

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