Privatization and local government reform in Germany: A slow train

Klaus-Dieter Schmidt

No 891, Kiel Working Papers from Kiel Institute for the World Economy

Abstract: The paper investigates the recent trends in privatization by local government organizations in Germany. It comes to the conclusion that the privatization policy has been two-directional: on the one hand, municipalities have reduced their economic activities, mainly by different forms of contracting out; on the other hand, they have expanded them into profitable fields. In many cases they have preferred a phantom privatization: government bodies have only been transferred into a private-law establishment. The paper examines the barriers to privatization and provides a strategy to overcome them.

JEL-codes: H4 (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:891

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