Fiscal Responses to Privatisation in Transition Economies: an Empirical Assessment

Abstract

One objective of privatisation is to provide a favourable fiscal position. Thus, the success of privatisation depends on fiscal responses of governments to privatisation. To assess the success of privatisation, the study uses a fiscal response model as an appropriate theoretical framework, modifying it to incorporate privatisation revenues. The resulting empirical equations allow us to examine the effects of privatisation on several fiscal variables. Applying the panel data from 22 transition economies to the empirical models, we find that while privatisation revenue has no impact on debt service or borrowing, it is related positively with expenditures and negatively with revenues.

The Relationship Between Public Sector Employment and Population Health: Evidence From the 1980s and Its Contemporary Implications

“…3(p6) The major argument used to justify this recent privatization wave remains the conventional wisdom, which claims that the economic efficiency of the public sector is generally worse than that of the private sector, [7][8][9][10] despite ample empirical evidence to the contrary. [11][12][13][14][15][16][17] The public sector's non-economic roles, however, have received much less emphasis from policymakers and the academic community (with only a few exceptions 15,[18][19][20][21] ). This study draws attention to an issue largely neglected even in the few studies that focus on the public sector's welfare functions: the relationship between public sector and health.…”