Rent Seeking and Government Ownership of Firms: An Application to China’s Township-Village Enterprises.
dc.contributor.author | Che, Jiahua | en_US |
dc.date.accessioned | 2006-08-01T16:02:17Z | |
dc.date.available | 2006-08-01T16:02:17Z | |
dc.date.issued | 2002-01-01 | en_US |
dc.identifier.other | RePEc:wdi:papers:2002-497 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/39882 | en_US |
dc.description.abstract | Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such government rent-seeking activity leads to a typical hold-up problem. Government ownership serves as a second-best commitment mechanism, through which the government agency will restrain itself from the rent-seeking activity and may even offer the manager assistance in the form of tax breaks and subsidies. This mechanism works at a cost, however, as government ownership also compromises ex post managerial incentives and creates distortion in resource allocation. Nevertheless, government ownership Pareto dominates private ownership under certain conditions. These conditions correspond to a host of stylized empirical observations concerning local government-owned firms, i.e., township-village enterprises, during China’s transition to a market economy. | en_US |
dc.format.extent | 73198 bytes | |
dc.format.extent | 3151 bytes | |
dc.format.extent | 442845 bytes | |
dc.format.mimetype | text/plain | |
dc.format.mimetype | text/plain | |
dc.format.mimetype | application/pdf | |
dc.language.iso | en_US | en_US |
dc.relation.ispartofseries | 497 | en_US |
dc.subject | Government Rent Seeking, Ownership of Firms, Township and Village Enterprises, China | en_US |
dc.subject.other | D23, D72, L33. | en_US |
dc.title | Rent Seeking and Government Ownership of Firms: An Application to China’s Township-Village Enterprises. | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/39882/3/wp497.pdf | en_US |
dc.owningcollname | William Davidson Institute (WDI) - Working Papers |
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