SFB 303 Discussion Paper No. A - 57

Author: Bös, Dieter
Title: Welfare Effects of Privatizing Public Enterprises
Abstract: It is the main objective of the present paper to explain in which way the dividend incomes influence the optimum policy on privatization. It would be possible to assume that the issue price to be paid for the shares of the privatized firm is equated to the expected dividends. Then there would be no net incomes from dividends. In the present paper, however, positive net incomes from dividends are considered. We show in which way the positive influence of both income effects and efficiency effects from privatization counteract the negative influence of profit (price) effects.
Creation-Date: November 1986
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