Autore
Savkov, Andrei

Titolo
The optimal sequence of privatization in transitional economies
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1996 - Fascicolo: 27 - Pagina iniziale: 1 - Pagina finale: 52

The paper presents a simple model of a transitional economy with many state-owned enterprises (SO E ) whose economic value is initially unknown. The lack of the information about value of SO E’s impedes privatization by sales. The government decides on the optim al sequence of privatization of SO E ’s according to the following two criteria: (1) the initial privatization of some SO E’s should provide the maximal informational gain; (2) an optim al privatization program should maximize the government’s revenues from the privatization of all SOE’s. The main results of the paper are two-fold: first, the optimal sequence of privatization is formally related to the structure of industrial relations within the economy, second, the paper characterizes computational methods that can solve the government’s problem. It is shown that the capability of the government to define the optimal sequence of privatization is lim ited by the com plexity of the problem and the efficiency of a solution method. The paper develops problem -solving techniques that help to overcome the com plexity constraints. These techniques are characterized in terms o f the efficient structure of an adm inistrative organization responsible for privatization.



Testo completo: http://hdl.handle.net/1814/599

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