Privatization and Restructuring : An Incomplete-Contract Approach /

Since an enterprise, which is to be privatized, has to be restructured in uncertainty, and the restructuring investments are sunk when the final decision on the sale price is taken, there is an imminent danger that restructuring is not efficient, and there is underinvestment. We consider, restructur...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Bos, Dieter
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1996.
سلاسل:IMF Working Papers; Working Paper ; No. 1996/101
الموضوعات:
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:Since an enterprise, which is to be privatized, has to be restructured in uncertainty, and the restructuring investments are sunk when the final decision on the sale price is taken, there is an imminent danger that restructuring is not efficient, and there is underinvestment. We consider, restructuring by the private buyer of the firm, by a government privatization agency, and by both. In the first two cases-one-sided restructuring-a first best can be achieved. In the case of both-sided restructuring, however, the first best cannot be reached if both parties engage in restructuring after signing the contract.
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وصف مادي:1 online resource (20 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students