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From State to Market Revisited: More Empirical Evidence on the Efficiency of Public (and Privately-owned) Enterprises

  • For several decades public entereprises have been criticised for their poor economic performance. Many economists take it as "conventional wisdom" that publicly owned enterprises are inefficient by their very nature. This seemed to be proved by what is probably the most cited survey worldwide, that was written by Megginson and Netter (2001). They claim: "Research now supports the proposition that privately owned firms are more efficient and more profitable than otherwise-comparable state-owned Firms" (p. 380). The objective of this paper is to question the proposition that public enterprises ar necessarily less efficient as their private counterparts. In doing so, we argue that profits are not a reasonable performance measure for public enterprises. However, our main focus is to present a much more comprehensive review of the empirical evidence than was provided by Megginson and Netter. The evidence indicates that theses authors' conclusions were biased in favour of privatization despite the evidence indicating that the true pictures is much more differentiated.

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Author:Holger Mühlenkamp
Series (Serial Number):FÖV Discussion Papers (75)
Publisher:Deutsches Forschungsinstitut für öffentliche Verwaltung
Place of publication:Speyer
Document Type:Working Paper
Date of Publication (online):2013/07/01
Date of first Publication:2013/07/01
Publishing Institution:Deutsches Forschungsinstitut für öffentliche Verwaltung
Creating Corporation:Deutsches Forschungsinstitut für öffentliche Verwaltung
Release Date:2016/06/16
Tag:firm performance; publicly provided goods
Psyndex Keyword:Public Enterprises; efficiency; privatization
Out of Print?:Nein
Page Number:27
Documents ordered by chairs:Lehrstuhl für Öffentliche Betriebswirtschaftslehre (Univ.-Prof. Dr. Holger Mühlenkamp)
Documents of the German Research Institute for Public Administration (FÖV):Sonstige Schriften
Licence (German):License LogoUrheberrechtlich geschützt