Privatization: an analysis of the welfare effects
DOI:
https://doi.org/10.1590/0101-41614832rppKeywords:
Privatization, Infrastructure, Welfare, Dynamic Recursive ModelAbstract
This paper uses a dynamic general equilibrium model to investigate the welfare and allocation impacts of an infrastructure privatization policy. The economy that is being modeled is composed of two types of capital, one inherently private and another with characteristics of public goods, denominated infrastructure, which is offered by both the public and private sectors. Assuming that this second type of capital generates positive external effects, the public supply of infrastructure can improve the decentralized allocation of this economy. However, assuming that the taxes that finance this supply and other public expenditures distort the decisions of the agents, depressing the level of welfare, the privatization of the infrastructure can be a socially satisfactory policy. The simulations indicate that the welfare gains of an infrastructure privatization policy depend heavily on the degree of contribution of the private versus the public supply in generating positive external effects.
Downloads
References
Ai, C., e Cassou S. P. 1995. “A Normative Analysis of Public Capital.” Applied Economics 27: 1201-1209.
Anuatti-Neto, F., Barossi-Filho, M., Carvalho, A. G. de, e Macedo, R. 2005. “Os efeitos da privatização sobre o
desempenho econômico e financeiro das empresas privatizadas”. Revista Brasileira de Economia 59(2): 151-175.
Aschauer, D. 1989. “Is Public Expenditure Productive?” Journal of Monetary Economics 23:177-200.
Calderón, C., e Servén, L. 2003. “Trends in Infrastructure in Latin America, 1980-2001.” Central Bank of Chile, Working Papers 269, September.
Privatização: Uma Análise de Bem-Estar 419 Estud. Econ., São Paulo, vol.48 n.3, p. 391-422, jul.-set. 2018
Cardoso, I. da C. V., Maia, A., Santos, S. M. dos, e Soares, F. De A. 2013. “O Impacto da Privatização no Desempenho Econômico: Um Estudo em Empresas Brasileiras de Grande Porte.” Revista Ibero-Americana de Estratégia 12:183-211.
Chari, V.V., Christiano, L, e Kehoe, P. 1995. “Policy Analysis in Business Cycle Models.” In Frontiers of Business Cycles Research, edited by T. F. Cooley, 12:357-391, Princeton, NY: Princeton University Press.
Cook, P., e Uchida, Y. 2003. “Privatization and economic growth in developing Countries.” Journal of Development Studies 39(6): 121-154.
Cooley, T. F. e Prescott, E. C. 1995. “Economic Growth and Business Cycles.” In Frontiers of Business Cycles Research, edited by T. F. Cooley, 1:1-38, Princeton, NY: Princeton University Press.
Duffy-Deno, K. e Eberts, R. W. 1991. “Public Infrastructure and Regional Economic Development: a Simultaneous Equations Approach.” Journal of Urban Economics 30: 329-343.
Easterly, W. e Rebelo, S. 1993. “Fiscal Policy and Economic Growth: an Empirical Investigation.” Journal of Monetary Economics 32(3): 417-458.
Ferreira, P. 1998. “Public versus Private Provision of Infrastructure in a Neoclassical Growth Model.” Fundação Getúlio Vargas, Ensaios Econômicos EPGE 339.
Ferreira, P. e Nascimento, L. G. 2005. “Welfare and Growth Effects of Alternative Fiscal Rules for Infrastructure Investment in Brazil.” Fundação Getúlio Vargas, Ensaios Econômicos EPGE 604.
Filipovic, A. 2006. “Impact of Privatization on Economic Growth.” Undergraduate Economic Review 2(1), 7.
Glomm, G. e Ravikumar, B. 1994. “Public Investment in Infrastructure in a Simple Growth Model.” Journal of Economic Dynamics and Control 18(6):1173-1187.
Gylfason, T. 2007. “Privatization, Efficiency, and Economic Growth”. In The Socio-Economic Transformation edited by Z. Nahorski, J. W. Owsiński, e T. Szapiro. London: Palgrave Macmillan.
Holtz-Eakin, D. 1992. “Public Sector Capital and Productivity Puzzle.” NBER, Working Paper 4122.
Hulten, C. e Schwab, R. 1992. “Public Capital Formation and the Growth of Regional Manufacturing Industries.”
National Tax Journal 45(4): 121-143.
Hulten, C. 1996. “Infrastructure Capital and Economic Growth: How Well Use It May Be More Important Than How Much You Have.” NBER, Working Paper 5847.
McGrattan, E. R. e Prescott, E. C. 2005. “Productivity and the post-1990 U.S. economy.” Federal Reserve Bank of St. Louis Review 87(4):537-49.
Megginson, W., e Netter, J. 2001. “From State to Market: A Survey of Empirical Studies on Privatization.” Journal of Economic Literature 39(2): 321-389.
Pereira, R. A. de C. e Ferreira, P. C. 2008. “Efeitos de crescimento e bem-estar da Lei de Parceria Público-Privada no Brasil.” Revista Brasileira de Economia 62(2):207-219.
Pritchett, L. 2000. “The Tyranny of Concepts: CUDIE (Cumulated, Depreciated, Investment Effort) is Not Capital.” Journal of Economic Growth 5 (4): 367-391.
Rahbar, F., Sargolzaei, M., Ahmadi, R. e Ahmadi, M. 2012. “Investigating the Effects of Privatization on the Economic Growth in Developing Countries: A Fixed Effects Approach.” Journal of Economics and Sustainable Development 3 (4): 61-66.
Schmitz, J. A. Jr. 2001. “Government Production of Investment Goods and Aggregate Labor Productivity.” Journal of Monetary Economics 47(1):163-87.
Schmitz, J. A. Jr e Teixeira, A. 2004. “Privatization’s Impact on Private Productivity: The Case of Brazilian Iron Ore.” Federal Reserve Bank of Minneapolis, Staff Report 337.
Shukurov, S., Maitah, M. e Smutka, L. 2016. “The Impact of Privatization on Economic Growth: The Case of Uzbekistan.” International Journal of Economics and Financial Issues 6(3): 948-957.
Suescún, R. 2005. “Fiscal Space for Investment in Infrastructure in Colombia.” World Bank Policy Research, Working Paper 3629, June.
Downloads
Published
Issue
Section
License
Copyright (c) 2018 Ricardo A de Castro Pereira, Pedro Cavalcanti Ferreira
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
By submitting an article, the author authorizes its publication and attests that it has not been submitted to any other journal. The original article is considered final. Articles selected for publication are proofread for grammatical and orthographic errors. The journal does not pay rights for published articles. The Institute of Economic Research from the School of Economics, Business and Accounting of the University of São Paulo (Instituto de Pesquisas Econômicas da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo) owns the journal's copyright.
