Public Utilities: Privatization without Regulation
Public Utilities: Privatization without Regulation
Author(s): Ornella TarolaSubject(s): Economy
Published by: Univerzita Karlova v Praze - Institut ekonomických studií
Keywords: Privatization; public utilities; dynamic programming
Summary/Abstract: In the last decades, transitional countries of Central and Eastern Europe have engaged in strong privatization programs of public utilities. However, a large part of them did not meet legal and economic conditions needed for a market economy to take place. In this paper, we study how a firm producing a public utility and moving from a public ownership to privatization and thus adopting a profit-maximizing criterion defines its production plans, when an appropriate regulatory environment is still lacking.
Journal: Czech Economic Review
- Issue Year: 4/2010
- Issue No: 01
- Page Range: 62-78
- Page Count: 17
- Language: English