Delayed Privatization

38 Pages Posted: 20 Jun 2008

See all articles by Paolo Pinotti

Paolo Pinotti

Bocconi University - BAFFI Center on International Markets, Money, and Regulation

Bernardo Bortolotti

Bocconi University; University of Turin

Date Written: April 30, 2008

Abstract

This paper studies the timing of privatization in 21 major developed economies in the 1977-2002 period. Duration analysis shows that political fragmentation plays a significant role in explaining government's decision to privatize: privatization is delayed longer in democracies characterized by a larger number of parties and operating under proportional electoral rules, as predicted by war of attrition models of economic reform. Results are robust to various assumptions on the underlying statistical model and to controlling for other economic and political factors.

Keywords: Privatization, Political Economy, War of Attrition

JEL Classification: D72, D78, L33

Suggested Citation

Pinotti, Paolo and Bortolotti, Bernardo, Delayed Privatization (April 30, 2008). Bank of Italy Temi di Discussione (Working Paper) No. 663, Available at SSRN: https://ssrn.com/abstract=1148702 or http://dx.doi.org/10.2139/ssrn.1148702

Paolo Pinotti (Contact Author)

Bocconi University - BAFFI Center on International Markets, Money, and Regulation ( email )

Milano, 20136
Italy

Bernardo Bortolotti

Bocconi University ( email )

Via Sarfatti 25
Milan, MI 20136
Italy

University of Turin

Via Po 53
Torino, Turin - Piedmont 10100
Italy

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