The paper analyzes governments' tradeoff between fiscal benefits and consumer surplus in privatization reforms of noncompetitive industries in developing countries. Under privatization, the control rights are transferred to private interests so that public subsidies decline. This benefit for tax-payers comes at the cost of price increases for consumers. In developing countries, tight budget constraints imply that privatization may be optimal for low...
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2006/06/01
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Documento de trabalho sobre pesquisa de políticas
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WPS3950
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1
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1
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2010/07/01
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Disclosed
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Infrastructure and public utilities privatization in developing countries
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lack of transparency and predictability
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