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PrivatizationNOMOS LX$
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Jack Knight and Melissa Schwartzberg

Print publication date: 2018

Print ISBN-13: 9781479842933

Published to NYU Press Scholarship Online: September 2019

DOI: 10.18574/nyu/9781479842933.001.0001

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Public-Sector Management is Complicated

Public-Sector Management is Complicated

Comment on Farrell

Chapter:
(p.200) 8 Public-Sector Management is Complicated
Source:
Privatization
Author(s):

Joseph Heath

Publisher:
NYU Press
DOI:10.18574/nyu/9781479842933.003.0009

This chapter holds that the pre-history of this wave – the phase of “corporatization” of state-owned enterprises – served as the true driver of the changes Henry Farrell identifies, such as increased reliance on contracting. The author suggests that the reforms aimed to remove state-owned enterprises from the political sphere, as a means of redressing agency problems, but in so doing changed their governance to such a degree that they were virtually indistinguishable from the operation of private firms. The author identifies a number of circumstantial changes which affected the distribution of transaction costs, and which undermined the case for state involvement..

Keywords:   Privatization, Corporatization, Market competition, Transaction Costs, State, Public Sector

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