Dynamic Model of Privatization

Alexander Blinov

No 39, East European Series from Institute for Advanced Studies

Abstract: The paper develops a simple theoretical framework in which the efficiency of industrial restructuring due to privatization process can be analysed. The dynamic model is based on the approach recently proposed by B. Gibson and A. Dutt (1993). This model is extended through inclusion the assumption of increasing efficiency of workers in state enterprises because of competition with the growing number of private firms. This paper attempts to analyse the optimality of time path of privatization in Ukraine as a country with mixed economy.

Keywords: Economic Dynamics; Transition Economies; Privatization (search for similar items in EconPapers)
JEL-codes: C62 E61 P17 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1996-09
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