The Different Extent of Privatization Proceeds in OECD Countries: A Preliminary Explanation Using a Public-Choice Approach

This paper empirically investigates the differences in the motives for raising privatization proceeds for a panel of 22 OECD countries from 1990 to 2001. We test whether privatizations can be mainly interpreted (a) as a means to foster growth, increase tax income, and relax the fiscal stance, (b) as a result of right-wing governments' more market-oriented policy stance, and (c) as a reaction to a country's institutional setting and the influence of interest groups. Whereas we are able to corroborate claim (c) only partly, we gain consistent evidence in favor of claims (a) and (b).