Privatization in Austria: Some Theoretical Reasons and First Results About the Privatization Proceeds

72 Pages Posted: 2 Mar 2004

See all articles by Ansgar Hubertus Belke

Ansgar Hubertus Belke

University of Duisburg-Essen - Department of Economics and Business Administration; IZA Institute of Labor Economics; Centre for European Policy Studies

Friedrich Schneider

Johannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Date Written: January 2004

Abstract

The issues of privatization (and sometimes deregulation) have been reviewed in a large body of literature on the various aspects of privatization, which has emphasized the potential efficiency gains. Hence, the goal of this paper is two-fold: First to provide some theoretical reasoning as to why privatization is both useful as well as profitable for an economy and, second, to empirically present the extent of privatization in Austria and other European Union countries. Therefore, the reasons that make privatization necessary are elaborated. Then the specific pattern of privatization proceeds for Austria relative to other EU and OECD countries is presented. Moreover, some important idiosyncratic extensions for the Austrian case are elaborated. We argue that in the Austrian case, any discussion of privatization cannot be reduced to observing cash flows, the employment performance and the stock-exchange ratings of the privatized formerly state-owned enterprises. Since polito-economic aspects relating to income distribution and ideology play an important role in explaining the way, the extent, the speed and the economic effects of privatization, they have to be considered as well.

Keywords: Austria, partisan approach, privatization, state-owned enterprises, public choice.

JEL Classification: H42, E62, L33

Suggested Citation

Belke, Ansgar Hubertus and Schneider, Friedrich G., Privatization in Austria: Some Theoretical Reasons and First Results About the Privatization Proceeds (January 2004). Available at SSRN: https://ssrn.com/abstract=511783

Ansgar Hubertus Belke (Contact Author)

University of Duisburg-Essen - Department of Economics and Business Administration ( email )

Universitätsstr. 9
Essen, 45141
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for European Policy Studies ( email )

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Brussels, 1000
Belgium

Friedrich G. Schneider

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
+43 732 2468 8210 (Phone)
+43 732 2468 8208 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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